Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast) - Main contents

Document date	24-04-2018
Publication date	25-04-2018
Reference	7506/18
From	General Secretariat of the Council
External link	original article
Original document in PDF

Council of the European Union

Brussels, 24 April 2018 (OR. en)

7506/18

Interinstitutional File: 2016/0380 (COD) i

ENER 110 ENV 200 CLIMA 55 COMPET 184 CONSOM 78 FISC 157 CODEC 444

NOTE

From: General Secretariat of the Council

To: Delegations

No. Cion doc.: 15150/1/16 REV 1

• + 

  ADD 1 REV 1

Subject: Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast)

Delegations will find in the Annex the four column document concerning the abovementioned

proposal.

______________________ ANNEX

Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast)

COMISSION PROPOSAL EP PLENARY TEXT COUNCIL GENERAL Compromise proposals APPROACH

(COD - doc. 15150/1/16 REV 1) (doc. 15886/17 + ADD 1 )

THE EUROPEAN PARLIAMENT THE EUROPEAN PARLIAMENT

AND THE COUNCIL OF THE AND THE COUNCIL OF THE

EUROPEAN UNION, EUROPEAN UNION,

Having regard to the Treaty on the Having regard to the Treaty on the

Functioning of the European Union, Functioning of the European Union, and in particular Article 194(2) and in particular Article 194(2) thereof, thereof,

Having regard to the proposal from the Having regard to the proposal from the

European Commission, European Commission,

After transmission of the draft After transmission of the draft legislative act to the national legislative act to the national parliaments, parliaments,

Having regard to the opinion of the Having regard to the opinion of the

European Economic and Social European Economic and Social

Committee 1 , Committee 3 ,

Having regard to the opinion of the Having regard to the opinion of the

Committee of the Regions 2 , Committee of the Regions 4 ,

1 OJ C 211, 19.8.2008, p. 23.

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Acting in accordance with the ordinary Acting in accordance with the ordinary legislative procedure, legislative procedure,

Whereas: Whereas:

• (1) 

  A number of amendments are to (1) A number of amendments are to be made to Directive 2009/72/EC i of be made to Directive 2009/72/EC i of the European Parliament and of the the European Parliament and of the Council 5 . In the interests of clarity, that Council 6 . In the interests of clarity, that Directive should be recast. Directive should be recast.

• (2) 

  The internal market in (2) The internal market in electricity, which has been electricity, which has been progressively implemented throughout progressively implemented throughout the Union since 1999, aims, by the Union since 1999, aims, by organising competitive electricity organising competitive electricity markets across country borders, to markets across country borders, to deliver real choice for all consumers of deliver real choice for all consumers of the European Union, be they citizens the European Union, be they citizens or businesses, new business or businesses, new business opportunities competitive prices, opportunities, competitive prices, efficient investment signals, higher efficient investment signals, higher standards of service, and to contribute standards of service, and to contribute to security of supply and sustainability. to security of supply and sustainability.

2 OJ C 172, 5.7.2008, p. 55.

3 OJ C 211, 19.8.2008, p. 23.

4 OJ C 172, 5.7.2008, p. 55.

5 Directive 2009/72/EC i of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC i (OJ L 211, 14.8.2009, p. 55).

6 Directive 2009/72/EC i of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC i (OJ L 211, 14.8.2009, p. 55).

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• (3) 

  Directive 2003/54/EC i of the (3) Directive 2003/54/EC i of the

European Parliament and of the European Parliament and of the

Council and Directive 2009/72/EC i of Council and Directive 2009/72/EC i of the European Parliament and of the the European Parliament and of the Council have made a significant Council have made a significant contribution towards the creation of contribution towards the creation of such an internal market in electricity. such an internal market in electricity. However, Europe's energy system is in However, Europe's energy system is in the middle of a profound change. The the middle of a profound change. The common goal to decarbonise the common goal to [] lower the emission energy system creates new of the energy system creates new opportunities and challenges for opportunities and challenges for market participants. At the same time, market participants. At the same time, technological developments allow for technological developments allow for new forms of consumer participation new forms of consumer participation and cross-border cooperation. There is and cross-border cooperation. There is a need to adapt the Union market rules a need to adapt the Union market rules to a new market reality. to a new market reality.

• (4) 

  The Energy Union Framework (4) The Energy Union Framework

Strategy sets out the vision of an Strategy sets out the vision of an

Energy Union with citizens at its core, Energy Union with citizens at its core, where citizens take ownership of the where citizens take ownership of the energy transition, benefit from new energy transition, benefit from new technologies to reduce their bills, technologies to reduce their bills, participate actively in the market, and participate actively in the market, and where vulnerable consumers are where vulnerable consumers are protected. protected.

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• (5) 

  The Communication from the AM 1 (5) The Communication from the

Commission of 15 July 2015 (5) The Communication from the Commission of 15 July 2015

'Delivering a new deal for energy Commission of 15 July 2015 'Delivering a new deal for energy consumers 7 ' put forward the 'Delivering a new deal for energy consumers 8 ' put forward the

Commission's vision for a retail market consumers 31 ' put forward the Commission's vision for a retail market that better serves energy consumers, Commission's vision for a retail market that better serves energy consumers, including by better linking wholesale that better serves energy consumers, including by better linking wholesale and retail markets. Taking advantage including by better linking wholesale and retail markets. Taking advantage of new technology, new and innovative and retail markets. Taking advantage of new technology, new and innovative energy service companies should of new technologies, new and energy service companies should enable all consumers to fully innovative energy service companies enable all consumers to fully participate in the energy transition, should enable all consumers to raise participate in the energy transition, managing their consumption to deliver their awareness of their energy managing their consumption to deliver energy efficient solutions which save consumption and to fully participate in energy efficient solutions which save them money and contribute to overall the energy transition, managing their them money and contribute to overall reduction of energy consumption. consumption to deliver energy efficient reduction of energy consumption.

solutions which save them money and contribute to overall reduction of energy consumption. ___________

31 COM (2015) 339 final i of 15.7.2015.

7 COM (2015) 339 final i of 15.7.2015.

8 COM (2015) 339 final i of 15.7.2015.

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• (6) 

  The Communication from the AM 2 (6) The Communication from the

Commission of 15 July 2015 (6) The Communication from the Commission of 15 July 2015

'Launching the public consultation Commission of 15 July 2015 'Launching the public consultation process on a new energy market 'Launching the public consultation process on a new energy market design' 9 highlighted that the move process on a new energy market design' 10 highlighted that the move away from generation in large central design' 32 highlighted that the move away from generation in large central power plants towards de-centralized away from generation in large central power plants towards de-centralized production from renewable energy power plants towards de-centralized production from renewable energy sources and decarbonized markets production from renewable energy sources [] requires an adaptation of the requires an adaptation of the current sources and decarbonized markets current rules of electricity trading and rules of electricity trading and changes requires an adaptation of the current changes to the existing market roles. It to the existing market roles. It rules of electricity trading and changes underlined needs to organise electricity underlined needs to organise electricity to the roles of existing market markets in a more flexible manner and markets in a more flexible manner and participants. It underlined needs to to fully integrate all market players – to fully integrate all market players – organize electricity markets in a more including renewable energy producers, including renewable energy producers, flexible manner and to fully integrate new energy service providers, energy new energy service providers, energy all market players – including storage and flexible demand. storage and flexible demand. renewable energy producers, new

energy service providers, energy storage and flexible demand. It is equally important for the Union to invest urgently in interconnection at European level for the transfer of energy through high-voltage, electric power transmission systems. _________________ 32 COM (2015) 340 final i of 15.7.2015.

9 COM (2015) 340 final i of 15.7.2015.

10 COM (2015) 340 final i of 15.7.2015.

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AM 3 (6a) (new) With a view to creating an internal market in electricity, Member States should foster the integration of their national markets and the cooperation of system operators at Union and regional level, also incorporating isolated systems forming electricity islands that persist in the Union.

• (7) 

  Apart from the new challenges, (7) Apart from the new challenges, the Directive seeks also to address the the Directive seeks also to address the persisting obstacles to the completion persisting obstacles to the completion of the internal market in electricity. of the internal market in electricity. Refined regulatory framework needs to Refined regulatory framework needs to contribute to overcoming the current contribute to overcoming the current problems of fragmented national problems of fragmented national markets which are still often markets which are still often determined by a high degree of determined by a high degree of regulatory interventions. Such regulatory interventions. Such interventions have led to obstacles to interventions have led to obstacles to the sale of electricity on equal terms as the sale of electricity on equal terms as well as higher costs in comparison to well as higher costs in comparison to solutions based on cross-border solutions based on cross-border cooperation and market-based cooperation and market-based principles. principles.

  AM 4 (7a) (new) The Union will most effectively meet its renewable targets through the creation of a market framework that rewards flexibility and innovations. A well-functioning electricity market design is the key enabler for the uptake of renewables.

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• (8) 

  Consumers are essential to AM 5 (8) Consumers are essential to achieving the flexibility necessary to (8) Consumers are essential to achieving the flexibility necessary to adapt the electricity system to variable, achieving the flexibility necessary to adapt the electricity system to variable, distributed renewable generation. adapt the electricity system to variable distributed renewable generation.

Technological progress in grid and distributed renewable generation. Technological progress in grid management and renewable generation Technological progress in grid management and renewable generation has unlocked many opportunities for management and renewable generation has unlocked many opportunities for consumers, and healthy competition on has unlocked many opportunities for consumers, and healthy competition on retail markets will be essential to consumers. Healthy competition on retail markets will be essential to ensuring the market-driven deployment retail markets will be essential to ensuring the market-driven deployment of innovative new services that cater to ensuring the market-driven deployment of innovative new services that cater to the consumers' changing needs and of innovative new services that address the consumers' changing needs and abilities, while increasing system consumers' changing needs and abilities, while increasing system flexibility. By empowering consumers abilities, while increasing system flexibility. By empowering consumers to participate in the energy market flexibility. However, the lack of real to participate in the energy market more, and participate in new ways, time or near real time information more, and participate in new ways, citizens should benefit from the provided to consumers about their citizens should benefit from the internal market in electricity and the energy consumption, in particular due internal market in electricity and the Union's renewable targets should be to the slow roll-out of smart meters, Union's renewable targets should be attained. has prevented them from being active attained.

participants in the energy market and the energy transition. By empowering consumers and providing them with the tools to participate in the energy market more, and participate in new ways, citizens should benefit from the internal market in electricity and the Union's renewable targets should be attained.

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(8a) This Directive respects fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union (‘Charter’). Accordingly, this Directive should be interpreted and applied in accordance with those rights and principles, in particular the right to protection of personal data guaranteed by Article 8 of the Charter. It is essential that any processing of personal data under this Directive be in compliance with Regulation (EU) 2016/679.

• (9) 

  The freedoms which the Treaty AM 6 (9) The freedoms which the Treaty guarantees the citizens of the Union — (9) The freedoms which the Treaty guarantees the citizens of the Union — inter alia, the free movement of goods, guarantees the citizens of the Union — inter alia, the free movement of goods, the freedom of establishment and the inter alia, the free movement of goods, the freedom of establishment and the freedom to provide services — are the freedom of establishment and the freedom to provide services — are achievable only in a fully open market, freedom to provide services — are achievable only in a fully open market, which enables all consumers freely to achievable only in a fully open and which enables all consumers freely to choose their suppliers and all suppliers interconnected market, which enables choose their suppliers and all suppliers freely to deliver to their customers. all consumers freely to choose their freely to deliver to their customers.

  suppliers and all suppliers freely to deliver to their customers.

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• (10) 

  Promoting fair competition and (10) Promoting fair competition and easy access for different suppliers easy access for different suppliers should be of the utmost importance for should be of the utmost importance for Member States in order to allow Member States in order to allow consumers to take full advantage of the consumers to take full advantage of the opportunities of a liberalised internal opportunities of a liberalised internal market in electricity. market in electricity. Nonetheless,

  market failure may still persist in peripheral small electricity systems and systems not connected with other EU Member States, where electricity prices fail to provide the right signal to drive investment, and may therefore require specific solutions to ensure an adequate level of security of electricity supply.

• (11) 

  In order to secure competition AM 7 (11) In order to secure competition and the supply of electricity at the most (11) In order to secure competition and the supply of electricity at the most competitive price, Member States and and the supply of electricity at the most competitive price, Member States and national regulatory authorities should competitive price, Member States and national regulatory authorities should facilitate cross-border access for new national regulatory authorities should facilitate cross-border access for new suppliers of electricity from different facilitate cross-border access for new suppliers of electricity from different energy sources as well as for new suppliers of electricity from different energy sources as well as for new providers of power generation storage energy sources as well as for new providers of power generation, storage and demand response. providers of power generation, storage and demand response.

  and demand response. However, Member States should cooperate in scheduling electricity flows and should take necessary action to prevent unscheduled loop-flows of electricity.

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AM 8 (11a) Member States should ensure

(11a) (new) Member States should that no undue barriers exist within

ensure that no undue barriers exist the internal electricity market as

within the internal electricity market regards market entry, operation and

as regards market entry, operation exit. At the same time, it should be

and exit. At the same time, it should clear that this provision is without

be clear that this obligation is without prejudice to those competences,

prejudice to those competences which which Member States retain in

Member States retain in relation to relation to third countries. Such a

third countries. Such a clarification clarification must not be interpreted

must not be interpreted as enabling a as enabling a Member State to

Member State to exercise an exclusive exercise an exclusive competence of

competence of the Union. It should the Union. It should also be clarified

also be clarified that market that market participants from third

participants from third countries must countries operating within the

comply with applicable Union and internal market must comply with

Member States' laws just like all other applicable Union and Member

market participants. States' laws just like all other

market participants.

AM 9 (11aa) Market rules allow for entry

(11b) (new) The European Council and exit of electricity generation and

stated in its conclusions of October electricity supply undertakings

2014 that the Commission supported based on their assessment of the

by the Member States must take economic and financial viability of

urgent measures in order to ensure their operations. This principle

the achievement of a minimum target would not be incompatible with the

of 10% of existing electricity possibility of Member States to

interconnections, as a matter of impose on undertakings operating in

urgency, and no later than 2020, at the electricity sector, in general

least for Member States which have economic interest, public service

not yet attained a minimum level of obligations, where this is done in

integration in the internal energy conformity with the Treaties, in

market, which are the Baltic States, particular Article 106 TFEU, and

Portugal and Spain, and for Member with the provisions of this Directive

States which constitute their main and [Electricity Regulation].

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point of access to the internal energy market. It further stated that the Commission will also report regularly to the European Council with the objective of arriving at a 15% target by 2030. (11b) Sufficient physical interconnection with neighbours is important to enable all countries to benefit from the positive effects of the internal market as stressed in the Commission's 'Communication on strengthening Europe's energy networks' 11 and as also reflected in the Integrated National Energy and Climate Plans under the [Governance Regulation].

• (12) 

  Securing common rules for a (12) Securing common rules for a true internal market and a broad supply true internal market and a broad supply of electricity accessible to all should of electricity accessible to all should also be one of the main goals of this also be one of the main goals of this Directive. To that end, undistorted Directive. To that end, undistorted market prices would provide an market prices would provide an incentive for cross-border incentive for cross-border interconnections and for investments in interconnections and for investments in new power generation while leading, new power generation while leading, in the long term, to price convergence. in the long term, to price convergence. (13) Market prices should give the (13) Market prices should give the right incentives for the development of right incentives for the development of the network and for investing in new the network and for investing in new electricity generation. electricity generation.

11 COM(2017) 718 final i

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• (14) 

  Different types of market (14) Different types of market organisation exist in the internal organisation exist in the internal market in electricity. The measures market in electricity. The measures that Member States could take in order that Member States could take in order to ensure a level playing field should to ensure a level playing field should be based on overriding requirements of be based on overriding requirements of general interest. The Commission general interest. The Commission should be consulted on the should be consulted on the compatibility of the measures with the compatibility of the measures with the Treaty and Union law. Treaty and Union law.

• (15) 

  Member States should maintain AM 10 (15) Member States should maintain a wide discretion to impose public (15) Member States should maintain a wide discretion to impose public service obligations on electricity a wide discretion to impose public service obligations on electricity undertakings in pursuing objectives of service obligations on electricity undertakings in pursuing objectives of general economic interest. Member undertakings in pursuing objectives of general economic interest. Member States should ensure that household general economic interest. Member States should ensure that household customers and, where Member States States should ensure that household customers and, where Member States deem it appropriate, small enterprises, customers and, where Member States deem it appropriate, small enterprises, enjoy the right to be supplied with deem it appropriate, small enterprises, enjoy the right to be supplied with electricity of a specified quality at enjoy the right to be supplied with electricity of a specified quality at clearly comparable, transparent and electricity of a specified quality at clearly comparable, transparent and competitive prices. Nevertheless, clearly comparable, transparent and competitive prices. Nevertheless, public service obligations in the form competitive prices. Nevertheless, public service obligations in the form of supply price regulation constitute a public service obligations in the form of supply price regulation constitute a fundamentally distortive measure that of supply price regulation constitute a fundamentally distortive measure that often leads to the accumulation of fundamentally distortive measure that often leads to the accumulation of tariff deficits, limitation of consumer often leads to the accumulation of tariff deficits, limitation of consumer choice, poorer incentives for energy tariff deficits, limitation of consumer choice, poorer incentives for energy saving and energy efficiency choice, poorer incentives for energy saving and energy efficiency investments, lower standards of saving and energy efficiency investments, lower standards of service, lower levels of consumer investments, lower standards of service, lower levels of consumer engagement and satisfaction, service, lower levels of consumer engagement and satisfaction, restriction of competition as well as engagement and satisfaction, restriction of competition as well as fewer innovative products and services restriction of competition as well as fewer innovative products and services on the market. Consequently, Member fewer innovative products and services on the market. Consequently, Member

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States should apply other policy tools, on the market. Consequently, Member States should apply other policy tools, and in particular targeted social policy States should apply other policy tools, and in particular targeted social policy measures, to safeguard the and in particular targeted social policy measures, to safeguard the affordability of electricity supply to measures, to safeguard the affordability of electricity supply to their citizens. Interventions in price affordability of electricity supply to their citizens. Interventions in price setting should only be applied in their citizens. Interventions in price setting should only be applied [] as limited exceptional circumstances. A setting should only be applied in very public service obligations and fully liberalised retail electricity limited exceptional circumstances in subject to specific conditions market would stimulate price and nonorder to protect the most vulnerable specified in this Directive. A fully price competition among existing and should be phased out within a liberalised retail electricity market suppliers and incentivise new market limited timeframe. A fully liberalised, would stimulate price and non-price entries therefore improving consumers' well-functioning retail electricity competition among existing suppliers choice and satisfaction. market would stimulate price and nonand incentivise new market entries

price competition among existing therefore improving consumers' choice suppliers and incentivise new market and satisfaction. entries therefore improving consumers' choice and satisfaction. (15a) Public service obligations in the form of electricity supply price regulation should be used without overriding the principle of open markets in clearly defined circumstances and beneficiaries and be limited in duration. Such circumstances could occur for example when the supply of electricity is severely constrained, causing significantly higher electricity prices than normal, or in the event of market failure where interventions by regulatory authorities and competition authorities have proven ineffective. This would disproportionately affect households, and in particular,

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vulnerable consumers who typically use a higher share of their disposable income on energy bills, compared to high income consumers. In order to mitigate the distortive effects of public service obligations in the price-setting for supply of electricity, Member States applying such interventions should put in place additional measures, including measures preventing distortions to wholesale market price setting. Member States should ensure that all beneficiaries of regulated prices are able to fully benefit from the offers of the competitive market when they choose so. To this effect they need to be equipped with smart meters and have access to dynamic electricity price contracts, they should be directly and regularly informed of the offers and savings available on the competitive market, in particular dynamic electricity price contracts, and be provided with assistance to engage with and benefit from market based offers.

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(15b) The entitlement of beneficiaries of regulated prices to receive individual smart meters without extra costs, does not prohibit Member States modifying the functionality of smart meters where smart meter infrastructure does not exist as the cost-benefit assessment regard roll-out of smart meters was negative. (15c) Interventions in electricity supply price regulation must not lead to cross-subsidisation between different categories of consumers in a direct manner. According to this principle, price systems must not explicitly make certain categories of consumers bear the cost of price interventions affecting other categories of consumers. For example, price interventions whose cost is born by suppliers or other operators in a non discriminatory manner should not be considered as direct cross-subsidisation.

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• (16) 

  In order to ensure the (16) In order to ensure the maintenance of the high standards of maintenance of the high standards of public service in the Union , all public service in the Union, all measures taken by Member States to measures taken by Member States to achieve the objective of this Directive achieve the objective of this Directive should be regularly notified to the should be regularly notified to the

Commission. The Commission should Commission. The Commission should regularly publish a report analysing regularly publish a report analysing measures taken at national level to measures taken at national level to achieve public service objectives and achieve public service objectives and comparing their effectiveness, with a comparing their effectiveness, with a view to making recommendations as view to making recommendations as regards measures to be taken at regards measures to be taken at national level to achieve high public national level to achieve high public service standards. service standards.

• (17) 

  It should be possible for (17) It should be possible for

Member States to appoint a supplier of Member States to appoint a supplier of last resort. That supplier may be the last resort. That supplier may be the sales division of a vertically integrated sales division of a vertically integrated undertaking, which also performs the undertaking, which also performs the functions of distribution, provided that functions of distribution, provided that it meets the unbundling requirements it meets the unbundling requirements of this Directive. of this Directive.

• (18) 

  It should be possible for (18) It should be possible for measures implemented by Member measures implemented by Member States to achieve the objectives of States to achieve the objectives of social and economic cohesion to social and economic cohesion to include, in particular, the provision of include, in particular, the provision of adequate economic incentives, using, adequate economic incentives, using, where appropriate, all existing national where appropriate, all existing national and Union tools. Such tools may and Union tools. Such tools may include liability mechanisms to include liability mechanisms to guarantee the necessary investment. guarantee the necessary investment.

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• (19) 

  To the extent to which measures (19) To the extent to which measures taken by Member States to fulfil public taken by Member States to fulfil public service obligations constitute State aid service obligations constitute State aid under Article 107(1) of the Treaty, under Article107(1) of the Treaty, there is an obligation under there is an obligation under Article Article 108(3) of the Treaty to notify 108(3) of the Treaty to notify them to them to the Commission. the Commission.

  (19a) Cross–sectorial legislation provides a strong basis for consumer protection for a wide range of energy services that exist, and may develop in the future. Nevertheless, certain basic contractual rights of customers should be clearly defined.

• (20) 

  Clear and comprehensible (20) Clear and comprehensible information should be made available information should be made available to consumers concerning their rights in to consumers concerning their rights in relation to the energy sector. The relation to the energy sector. The

Commission has established, after Commission has established , after consulting relevant stakeholders consulting relevant stakeholders including Member States, national including Member States, national regulatory authorities, consumer regulatory authorities, consumer organisations and electricity organisations and electricity undertakings an energy consumer undertakings an energy consumer checklist providing consumers with checklist providing consumers with practical information about their rights. practical information about their rights. That checklist should be maintained up That checklist should be maintained up to date provided to all consumers and to date provided to all consumers and made publicly available. made publicly available.

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• (21) 

  At present, several factors (21) At present, several factors impede consumers from accessing, impede consumers from accessing, understanding and acting upon the understanding and acting upon the various sources of market information various sources of market information available to them. To that end, the available to them. To that end, the comparability of offers should be comparability of offers should be improved and barriers to switching improved and barriers to switching minimised to the greatest practicable minimised to the greatest practicable extent without unduly limiting extent without unduly limiting consumer choice. consumer choice.

• (22) 

  Customers are still being

charged a broad range of fees directly (22) Smaller customers are still or indirectly as a result of switching being charged a broad range of fees energy supplier. Such fees make directly or indirectly as a result of calculating the best product or service switching energy supplier. Such fees more difficult and diminish the make calculating the best product or immediate financial advantage of service more difficult and diminish the switching. Although removing such immediate financial advantage of fees may limit consumer choice by switching. Although removing such eliminating products based on fees may limit consumer choice by rewarding consumer loyalty, restricting eliminating products based on their use further should improve rewarding consumer loyalty, restricting consumer welfare, consumer their use further should improve engagement and competition in the consumer welfare, consumer

market. engagement and competition in the market.

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(22a) Shorter expected switching times can encourage consumers to search for better energy deals and switch suppliers. The increased deployment of information technology will mean that the technical switching process of registering a new supplier in a metering point at the market operator should typically be able to be completed within 24 hours on any working day by the year 2025. Notwithstanding other steps in the switching process that must be completed before the technical process of switching is initiated, ensuring the technical process of switching can take place within 24 hours by this date will minimise switching times, helping to increase consumer engagement and retail competition. In any case, the total duration of the switching process should not exceed three weeks from the date of the customer notification.

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• (23) 

  Independent comparison tools

including websites are an effective (23) Independent comparison tools means for customers to assess the including websites are an effective merits of different energy offers means for smaller customers to assess available on the market. Search costs the merits of different energy offers are lower as they no longer need to available on the market. Search costs collect information from individual are lower as they no longer need to suppliers and service providers. Such collect information from individual tools can provide the right balance suppliers and service providers. Such between the need for information to be tools can provide the right balance clear and concise and the need for it to between the need for information to be be complete and comprehensive. They clear and concise and the need for it to should aim at including the broadest be complete and comprehensive. They possible range of available offers, and should aim at including the broadest at covering the market as completely possible range of available offers, and as is feasible so as to give the customer at covering the market as completely a representative overview.. It is crucial as is feasible so as to give the customer that the information given on such a representative overview. It is crucial tools be trustworthy, impartial and that consumers have access to at least

transparent. one comparison tool and that the information given on such tools be

trustworthy, impartial and transparent. Member States may provide for this through a comparison tool that is operated by a national authority or a verified comparison tool that is operated by a private company.

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• (24) 

  Greater consumer protection is AM 11 (24) Greater consumer protection is guaranteed by the availability of (24) Greater consumer protection is guaranteed by the availability of effective means of dispute settlement guaranteed by the availability of effective means of dispute settlement for all consumers. Member States effective means of independent for all consumers. Member States should introduce speedy and effective dispute settlement mechanisms for all should introduce speedy and effective complaint handling procedures. consumers, such as energy complaint handling procedures.

  ombudsman or a consumer body.

  Member States should introduce speedy and effective complaint handling procedures.

• (25) 

  All consumers should be able to AM 12 (25) All consumers should be able to benefit from directly participating in (25) All consumers should be able to benefit from directly participating in the market, in particular by adjusting benefit from directly participating in the market, in particular by adjusting their consumption according to market the market, in particular by adjusting their consumption according to market signals and in return benefit from their consumption according to market signals and in return benefit from lower electricity prices or other signals and in return benefit from lower electricity prices or other incentive payments. The benefits of lower electricity prices or other incentive payments. The benefits of this active participation are likely to incentive payments. The benefits of this active participation are likely to increase over time when electric this active participation are likely to increase over time when electric vehicles, heat pumps and other flexible increase over time when the awareness vehicles, heat pumps and other flexible loads become more competitive. of otherwise passive consumers is loads become more competitive.

Consumers should be enabled to raised about their possibilities as Consumers should be enabled to participate in all forms of demand active consumers and when the participate in all forms of demand response and therefore should have the information on the possibilities of response and therefore should have the possibility to opt for having a smart active participation are better possibility to opt for having a smart metering system and a dynamic accessible and known. Consumers metering system and a dynamic electricity pricing contract. This should should be enabled to participate in all electricity pricing contract. This should allow them to adjust their consumption forms of demand response and allow them to adjust their consumption according to real time price signals that therefore should have the possibility to according to real time price signals that reflect the value and cost of electricity benefit from the full roll-out of smart reflect the value and cost of electricity or transportation in different time metering systems, and in cases where or transportation in different time periods, while Member States should such a roll out has been negatively periods, while Member States should ensure a reasonable exposure of assessed, they should be able to opt ensure a reasonable exposure of consumers to the wholesale price risk. for having a smart metering system consumers to the wholesale price risk. Member States should also ensure that and a dynamic electricity pricing Member States should also ensure that

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those consumers who choose not to contract. This should allow them to those consumers who choose not to actively engage in the market are not adjust their consumption according to actively engage in the market are not penalised but instead their informed real time price signals that reflect the penalised but instead their informed decision making on the options value and cost of electricity or decision making on the options available to them should be facilitated transportation in different time periods, available to them should be facilitated in the manner that is the most suitable while Member States should ensure a in the manner that is the most suitable for domestic market conditions. reasonable exposure of consumers to for domestic market conditions.

the wholesale price risk. Consumers should be informed about potential price risk of dynamic price contracts. Member States should also ensure that those consumers who choose not to actively engage in the market are not penalised but instead their informed decision making on the options available to them should be facilitated in the manner that is the most suitable for domestic market conditions.

• (26) 

  All customer groups (industrial, (26) All customer groups (industrial, commercial and households) should commercial and households) should have access to the energy markets to have access to the energy markets to trade their flexibility and selftrade their flexibility and selfgenerated electricity. Customers generated electricity. Customers should be allowed to make full use of should be allowed to make full use of the advantages of aggregation of the advantages of aggregation of production and supply over larger production and supply over larger regions and benefit from cross-border regions and benefit from cross-border competition. Aggregators are likely to competition. [] Market participants play an important role as engaged in aggregation are likely to intermediaries between customer play an important role as groups and the market. Transparent intermediaries between customer and fair rules should be established to groups and the market. Member also allow independent aggregators to States should be free to choose the fulfil this role. Products should be appropriate implementation model defined on all organised energy and approach to governance, for

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markets, including ancillary services independent aggregation while and capacity markets so as to respecting the general principles as encourage the participation of demand laid out in this Directive. This could response. include market-based or regulatory

principles which provide solutions which achieve the provisions set out in this Directive, including models where imbalances are corrected. The chosen model should contain transparent and fair rules [] to [] allow independent aggregators to fulfil this role and to ensure, that the final customer adequately benefits from their activity. Products should be defined on all [] energy markets, including ancillary services and capacity markets so as to encourage the participation of demand response.

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• (27) 

  The 'European Strategy for Low (27) The 'European Strategy for Low

Emission Mobility' 12 stresses the need Emission Mobility' 13 stresses the need for the decarbonisation of the transport for the decarbonisation of the transport sector and the reduction of its sector and the reduction of its emissions especially in urban areas and emissions especially in urban areas and highlights the important role that highlights the important role that electro-mobility can play in electro-mobility can play in contributing to these objectives. contributing to these objectives.

Moreover, the deployment of electro Moreover, the deployment of electromobility constitutes an important mobility constitutes an important element of the energy transition. element of the energy transition.

Market rules set out in this Directive Market rules set out in this Directive should therefore contribute to creating should therefore contribute to creating favourable conditions for electric favourable conditions for electric vehicles of all kinds. In particular, they vehicles of all kinds. In particular, they should safeguard the effective should safeguard the effective deployment of publicly accessible and deployment of publicly accessible and private recharging points for electric private recharging points for electric vehicles and ensure the efficient vehicles and ensure the efficient integration of vehicle charging into integration of vehicle charging into system operation. system operation.

• (28) 

  Demand response will be pivotal (28) Demand response will be pivotal to enable smart charging of electric to enable smart charging of electric vehicles and thereby enable the vehicles and thereby enable the efficient integration of electric vehicles efficient integration of electric vehicles into the electricity grid which will be into the electricity grid which will be crucial for the decarbonisation of crucial for the process of transport. decarbonisation of transport.

12 SWD(2016) 244 final

13 SWD(2016) 244 final

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• (29) 

  Consumers should be able to (29) Consumers should be able to consume, store and/or sell selfconsume, store and/or sell selfgenerated electricity to the market. generated electricity to the market. New technology developments will New technology developments will facilitate these activities in the future. facilitate these activities in the future. However, legal and commercial However, legal and commercial barriers exist including for example barriers exist including for example disproportionate fees for internally disproportionate fees for internally consumed electricity, obligations to consumed electricity, obligations to feed self- generated electricity to the feed self- generated electricity to the energy system, administrative burdens energy system, administrative burdens such as for self- generators who sell such as for self- generators who sell electricity to the system to comply electricity to the system to comply with the requirements for suppliers, with the requirements for suppliers, etc. All these obstacles that prevent etc. All these obstacles that prevent consumers from self-generating and consumers from self-generating and from consuming, storing or selling from consuming, storing or selling self-generated electricity to the market self-generated electricity to the market should be removed while it should be should be removed while it should be ensured that self-generating consumers ensured that self-generating consumers contribute adequately to system costs. contribute adequately to system costs.

  Member States may have different governing provisions with respect to taxes and levies for individual and jointly acting final customers as well as for household and other final customers in their national legislation.

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• (30) 

  Distributed energy technologies AM 13 (30) Distributed energy technologies and consumer empowerment have (30) Distributed energy technologies and consumer empowerment have made community energy and energy and consumer empowerment have made community energy [] an effective cooperatives an effective and costmade community energy and energy and cost-efficient way to meet citizens' efficient way to meet citizens' needs cooperatives an effective and costneeds and expectations regarding and expectations regarding energy efficient way to meet citizens' needs energy sources, services and local sources, services and local and expectations regarding energy participation. Community energy participation. Community energy sources, services and local offers an inclusive option for all offers an inclusive option for all participation. Community energy consumers to have a direct stake in consumers to have a direct stake in offers an inclusive option for all producing, consuming or sharing producing, consuming or sharing consumers to have a direct stake in energy between each other []. energy between each other within a producing, consuming or sharing Community energy initiatives focus geographically confined community energy between each other, on the primarily on providing affordable network that may operate in an isolated basis of open and voluntary energy of a specific kind, such as mode or be connected to the public participation, within a geographically renewable energy, for their members distribution network. Community confined community network that may or shareholders rather than prioritising energy initiatives focus primarily on operate in an isolated mode or be profit-making like a traditional energy providing affordable energy of a connected to the public distribution company. By directly engaging with specific kind, such as renewable network. Community energy initiatives consumers community energy energy, for their members or focus primarily on providing initiatives are demonstrating their shareholders rather than prioritising affordable energy of a specific kind, potential in facilitating the up-take of profit-making like a traditional energy such as renewable energy, for their new technologies and consumption company. By directly engaging with members or shareholders, contributing patterns, including smart distribution consumers community energy to bringing benefits to local grids and demand response, in an initiatives are demonstrating their communities and to representing local integrated manner. Community energy potential in facilitating the up-take of interests, and rather than prioritising can also advance energy efficiency at new technologies and consumption profit-making like a traditional energy household level and help fight energy patterns, including smart distribution company. By directly engaging with poverty through reduced consumption grids and demand response, in an consumers community energy and lower supply tariffs. Community integrated manner. Community energy initiatives are demonstrating their energy also enables certain groups of can also advance energy efficiency at potential in facilitating the up-take of household consumers to participate in household level and help fight energy new technologies and consumption the energy market who otherwise poverty through reduced consumption patterns, including smart distribution might not have been able to do so. and lower supply tariffs. Community grids and demand response, in an Where they have been successfully energy also enables certain groups of integrated manner. Community energy operated such initiatives have

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household consumers to participate in can also advance energy efficiency at delivered economic, social and the energy market who otherwise household level and help fight energy environmental value to the community might not have been able to do so. poverty through reduced consumption that goes beyond the mere benefits Where they have been successfully and lower supply tariffs. Community derived from the provision of energy operated such initiatives have energy also enables certain groups of services. [] The Directive aims at delivered economic, social and household consumers to participate in recognizing certain categories of environmental value to the community the energy market who otherwise citizen energy initiatives at the that goes beyond the mere benefits might not have been able to do so. European level as "energy derived from the provision of energy Where they have been successfully communities" to provide them with services. Local energy communities operated such initiatives have an enabling framework, fair should be allowed to operate on the delivered economic, social and treatment, a level playing field and a market on a level-playing field without environmental value to the community well-defined catalogue of rights and distorting competition. Household that goes beyond the mere benefits obligations. Household consumers consumers should be allowed to derived from the provision of energy should be allowed to voluntarily voluntarily participate in a community services. Local energy communities participate in a community energy energy initiative as well as to leave it, should be allowed to operate on the initiative as well as to leave it, without without losing access to the network market on a level-playing field without losing access to the network operated operated by the community energy distorting competition. Household by the community energy initiative or initiative or their rights as consumers. consumers should be allowed to their rights as consumers. Access to a Access to a local energy community's voluntarily participate in a community [] energy community's network should network should be granted on fair and energy initiative as well as to leave it, be granted on fair and cost-reflective cost-reflective terms. without losing access to the network terms.

operated by the community energy initiative or their rights as consumers. Access to a local energy community's network should be granted on fair and cost-reflective terms.

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(30a) Energy community membership is open to all categories of entities, however the decisionmaking powers within an energy community should be limited to those members or shareholders that are not engaged in large scale commercial activity and for which the energy sector does not constitute a primary area of economic activity. Energy communities, as defined in the Directive, are deemed a category of citizens' initiatives that should be subject to recognition and protection under the Union law. The definition of energy communities does not prevent the existence of other citizen initiatives such as those stemming from private law agreements. Therefore, it should be possible for Member States to choose any form of entity for energy communities as long as such an entity may, acting in its own name, exercise rights and be subject to obligations. (30b) The provisions on energy communities contain a catalogue of applicable rights and obligations, which could be deduced from other, already existing rules, such as the freedom of contracting, supplier switching rules, distribution system operator responsibilities, network charges, balancing obligation.

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(30c) Energy communities constitute a new type of entity due to their membership structure, governance requirements and purpose. They should be allowed to operate on the market on a level-playing field without distorting competition subject to the same rights and obligations as the other electricity undertakings. The rights and obligations should apply according to the roles undertaken such as the roles of final customers, generators, suppliers, distribution system operators. Energy communities should not face regulatory restrictions if they apply existing or future ICT technologies to share electricity from generation assets within the community between its members or shareholders based on market principles, for example by offsetting the energy component of members using the generation available within the community, even over the public network, provided that both metering points belong to the community. Virtual sharing enables members to be supplied with electricity from the generation plants within the community without being in direct physical proximity or behind a single metering point. Where electricity is shared over the public network it should not affect the collection of

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network charges, tariffs, taxes and levies related to electricity flows. The sharing should be facilitated according the obligations and correct timeframes for balancing, metering and settlement. The provisions on energy communities do not interfere with the Member States' competence to design and implement their policies for the energy sector related to taxation, network charges and tariffs or energy policy financing systems and cost sharing as long as those policies are non-discriminatory and lawful. (30d) The Directive foresees a possibility for Member States to allow an energy community to become a distribution system operator either under the general regime or in accordance with Art. 38 as the so-called "Closed Distribution System Operator". Once an energy community is granted the status as a distribution system operator, it should be treated and be subject to the same obligations as distribution system operators. The provisions on energy communities only clarifies aspects of distribution system operation that are likely to be relevant for energy communities, while other aspects on distribution system operation apply according to the provisions on distribution system operators.

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• (31) 

  Energy bills and annual AM 14 (31) Energy bills [] are an important statements are an important means (31) Energy bills and annual means through which customers are through which customers are informed. statements are an important means informed. As well as data on

As well as data on consumption and through which customers are informed. consumption and costs, they can also costs, they can also convey other Energy bills and annual statements convey other information that helps information that helps consumers to provide data on consumption and consumers to compare their current compare their current deal with other costs, while they can also convey other deal with other offers. However, [] offers. However, considering that billinformation that helps consumers to bill-related disputes are a very related disputes are a very common compare their current deal with other common source of consumer source of consumer complaints, a offers. However, considering that billcomplaints, a factor which contributes factor which contributes to persistently related disputes are a very common to persistently low levels of consumer low levels of consumer satisfaction and source of consumer complaints, bills satisfaction and engagement in the engagement in the energy sector, it is and annual statements contribute to energy sector. It is therefore necessary necessary to make bills and annual persistently low levels of consumer to make bills [] clearer and easier to statements clearer and easier to satisfaction and engagement in the understand, as well as to ensure that understand, as well as to ensure that energy sector. Therefore it is bills and billing information [] bills contain all the information necessary to make bills and annual prominently display a limited necessary to enable consumers to statements clearer and easier to number of important information regulate their energy consumption, understand, as well as to ensure that items that are necessary to enable compare offers and switch suppliers. bills contain all the information consumers to regulate their energy

necessary to enable consumers to consumption, compare offers and regulate their energy consumption, switch suppliers. Other information compare offers and switch suppliers. items should be available to final customers in, with or signposted to within their bills. These can be displayed in the bill, be in a separate document attached to the bill, or the bill can contain a reference to where the customer can easily find the information on a website, app or through other means.

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(31a) The regular provision of accurate billing information based on actual consumption, facilitated by smart meters, is important for helping consumers to control their electricity consumption and costs. Nevertheless, consumers, in particular household consumers, should have access to flexible arrangements for actual payment. This enables, for example, consumers to be provided frequent billing information whilst only paying on a quarterly basis, or products where the consumer pays the same amount every month independent of the actual consumption. (31b) The provisions on billing provided for in Directive 2012/27 i/EU of the European Parliament and of the Council 14 should be updated, streamlined and moved to Directive 2009/72/EC, where they fit more coherently.

• (32) 

  Member States should AM 15 (32) Member States should encourage the modernisation of (32) Member States should encourage the modernisation of distribution networks, such as through encourage the modernisation of distribution networks, such as through the introduction of smart grids, which distribution networks, such as through the introduction of smart grids, which should be built in a way that the introduction of smart grids, which should be built in a way that encourages decentralised generation should be built in a way that encourages decentralised generation and energy efficiency. encourages decentralised generation, and energy efficiency.

  energy storage and energy efficiency.

14 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC i and 2010/30/EU and

repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

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• (33) 

  Engaging consumers requires (33) Engaging consumers requires appropriate incentives and appropriate incentives and technologies such as smart metering. technologies such as smart metering. Smart metering systems empower Smart metering systems empower consumers as they allow them to consumers as they allow them to receive accurate and near-real time receive accurate and near-real time feedback on their energy consumption feedback on their energy consumption or generation allowing them to manage or generation allowing them to manage it better, participate in and reap it better, participate in and reap benefits from demand side response benefits from demand side response programmes and other services, and programmes and other services, and lower their electricity bill. Smart lower their electricity bill. Smart metering also enables distribution metering also enables distribution system operators to have better system operators to have better visibility of their networks, and visibility of their networks, and consequently reduce their operation consequently reduce their operation and maintenance costs and pass those and maintenance costs and pass those savings to the distribution tariffs which savings to the distribution tariffs which are ultimately borne by consumers. are ultimately borne by consumers. (34) When it comes to deciding at AM 16 (34) When it comes to deciding at national level on the smart metering (34) When it comes to deciding at national level on the smart metering deployment, it should be possible to national level on the smart metering deployment, it should be possible to base this on an economic assessment. deployment, it should be possible to base this on an economic assessment. Should that assessment conclude that base this on an economic assessment. Should that assessment conclude that the introduction of such metering This economic assessment should the introduction of such metering systems is economically reasonable take into account the long term systems is economically reasonable and cost-effective only for consumers benefits of smart metering deployment and cost-effective only for consumers with a certain amount of electricity for the whole value chain, in with a certain amount of electricity consumption, Member States should be particular for better network consumption, Member States should be able to take that into account when management, more precise planning able to take that into account when proceeding with implementation. and identification of network losses. proceeding with implementation.

  Should that assessment conclude that the introduction of such metering systems is cost-effective only for consumers with a certain amount of

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electricity consumption, Member States should be able to take that into account when proceeding with implementation. This assessment should however be reviewed regularly and at least every two years in light of the fast evolving technological developments.

• (35) 

  Member States that are not (35) Member States that are not systematically rolling out smart systematically rolling out smart metering should give the possibility to metering should give the possibility to consumers to benefit, upon request and consumers to benefit, upon request and under fair and reasonable conditions, under fair and reasonable conditions, and by providing them with all the and by providing them with all the relevant information, from the relevant information, from the installation of an electricity smart installation of an electricity smart meter. Where consumers do not have meter. Where consumers do not have smart meters, they should be entitled to smart meters, they should be entitled to meters that fulfil the minimum meters that fulfil the minimum requirements necessary to provide requirements necessary to provide them with the billing information them with the billing information specified in this Directive. specified in this Directive.

• (36) 

  In order to assist consumers' (36) In order to assist consumers' active participation in the electricity active participation in the electricity market, the smart metering systems to market, the smart metering systems to be deployed by Member States in their be deployed by Member States in their territory should be interoperable, not territory should be interoperable, not represent a barrier to switching of represent a barrier to switching of supplier, and should be equipped with supplier, and should be equipped with fit-for-purpose functionalities that fit-for-purpose functionalities that allow consumers to have near-real time allow consumers to have near-real time access to their consumption data, access to their consumption data, modulate their energy consumption modulate their energy consumption and, to the extent that the supporting and, to the extent that the supporting infrastructure permits, offer their infrastructure permits, offer their flexibility to the network and to energy flexibility to the network and to energy

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services companies, be rewarded for it, services companies, be rewarded for it, and achieve savings in their electricity and achieve savings in their electricity bill. bill.

• (37) 

  A key aspect of supplying AM 17 (37) A key aspect of supplying customers is access to objective and (37) A key aspect of supplying final customers is access to objective and transparent consumption data. Thus, customers is access to objective, timely transparent consumption data. Thus, consumers should have access to their and transparent consumption data. consumers should have access to their consumption data and associated prices Thus, consumers should have access to consumption data and associated prices and services costs so that they can their consumption data and associated and services costs so that they can invite competitors to make an offer prices and services costs so that they invite competitors to make an offer based on those data. Consumers should can invite competitors to make an offer based on those data. Consumers should also have the right to be properly based on those data. Consumers should also have the right to be properly informed about their energy also have the right to be properly informed about their energy consumption. Prepayments should not informed about their energy consumption. Prepayments should not place a disproportionate disadvantage consumption. Prepayments should not place a disproportionate disadvantage at their users, while different payment place a disproportionate disadvantage at their users, while different payment systems should be non-discriminatory. at their users, while different payment systems should be non-discriminatory. Information on energy costs provided systems should be non-discriminatory. Information on energy costs provided to consumers frequently enough will Information on energy costs provided to consumers frequently enough will create incentives for energy savings to final consumers frequently enough create incentives for energy savings because it will give customers direct will create incentives for energy because it will give customers direct feedback on the effects of investment savings because it will give final feedback on the effects of investment in energy efficiency and change of customers direct feedback on the in energy efficiency and change of behaviour. In this respect, full effects of investment in energy behaviour. In this respect, full implementation of Directive efficiency and change of behaviour. In implementation of Directive

2012/27/EU of the European this respect, full implementation of 2012/27/EU of the European

Parliament and of the Council 15 will Directive 2012/27 i/EU of the European Parliament and of the Council 16 will help consumers to reduce their energy Parliament and of the Council 35 will help consumers to reduce their energy costs. help consumers to reduce their energy costs.

costs.

15 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC i and

2010/30/EU and repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

16 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives

2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

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• (38) 

  Currently different models for AM 18 (38) Currently different models for the management of data have been (38) Currently different models for the management of data have been developed or are under development in the management of data have been developed or are under development in the Member States following the developed or are under development in the Member States following the deployment of smart metering systems. the Member States following the deployment of smart metering systems. Independently of the data management deployment of smart metering systems. Independently of the data management model it is important that Member Independently of the data management model it is important that Member

States put in place transparent rules model it is important that Member States put in place transparent rules under which data can be accessed States put in place transparent rules under which data can be accessed under non-discriminatory conditions under which data can be accessed and under non-discriminatory conditions and ensure the highest level of exchanged under non-discriminatory and ensure the highest level of cybersecurity and data protection as conditions and in an effective manner cybersecurity and data protection as well as the impartiality of the entities and ensure the highest level of data well as the impartiality of the entities which handle data. integrity, cybersecurity and data which handle data.

protection as well as the impartiality of the entities which handle data. Member States should also ensure that consumers remain in control and owners of the consumption data, in particular by being able to identify themselves, give or withdraw consent in an easy manner in accordance with Union data protection legislation.

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• (39) 

  Member States should take the (39) Member States should take the necessary measures to protect necessary measures to protect vulnerable and energy poor customers vulnerable and energy poor customers in the context of the internal market in in the context of the internal market in electricity. Such measures may differ electricity. Such measures may differ according to the particular according to the particular circumstances in the Member States in circumstances in the Member States in question and may include social or question and may include social or energy policy measures relating to the energy policy measures relating to the payment of electricity bills, investment payment of electricity bills, investment in residential energy efficiency or in residential energy efficiency or consumer protection such as consumer protection such as disconnection safeguards. Where disconnection safeguards. Where universal service is also provided to universal service is also provided to small enterprises, measures to ensure small enterprises, measures to ensure that such universal service is provided that such universal service is provided may differ according to whether they may differ according to whether they are aimed at household customers or are aimed at household customers or small enterprises. small enterprises.

• (40) 

  Energy services are fundamental AM 19 (40) Energy services are fundamental to safeguard the well-being of the (40) Energy supply is fundamental to to safeguard the well-being of the

Union citizens. Adequate warmth, safeguard the well-being of the Union Union citizens. Adequate warmth, cooling, lighting and the energy to citizens. Heating, cooling, lighting and cooling, lighting and the energy to power appliances are essential services the energy to power appliances are power appliances are essential services to guarantee a decent standard of living essential to guarantee a decent standard to guarantee a decent standard of living and citizens' health. Furthermore, of living and citizens' health. and citizens' health. Furthermore, access to these energy services Furthermore, access to energy access to these energy services empowers European citizens to fulfil empowers European citizens to fulfil empowers European citizens to fulfil their potential and it enhances social their potential and it enhances social their potential and it enhances social inclusion. Energy poor households are inclusion. Energy poor households are inclusion. Energy poor households are unable to afford these energy services unable to afford these energy services unable to afford these energy services due to a combination of low income, due to a combination of low income, due to a combination of low income, high energy expenditure and poor high energy expenditure and poor high energy expenditure and poor energy efficiency of their homes. energy efficiency of their homes. energy efficiency of their homes.

Member States should collect the right Member States should collect the right Member States should collect the right

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information to monitor the number of information to monitor the number of information to monitor the number of households in energy poverty. households in energy poverty. households in energy poverty.

Accurate measurement should assist Accurate measurement should assist Accurate measurement should assist

Member States to identify those Member States to identify those Member States to identify those households affected by energy poverty households affected by energy poverty households affected by energy poverty in order to provide targeted support. in order to provide targeted support in order to provide targeted support. The Commission should actively through their social welfare systems The Commission should actively support the implementation of the or other policy measures. The support the implementation of the provisions on energy poverty by Commission should actively support provisions on energy poverty by facilitating the sharing of good the implementation of the provisions facilitating the sharing of good practices between Member States. on energy poverty by facilitating the practices between Member States.

sharing of good practices between Member States.

• (41) 

  Member States which are AM 20 (41) Member States which are affected by energy poverty and which (41) Energy poverty is a growing affected by energy poverty and which have not yet done so should therefore problem in the Union. Member States have not yet done so should therefore develop national action plans or other which are affected by energy poverty develop national action plans or other appropriate frameworks to tackle this and which have not yet done so should appropriate frameworks to tackle this problem, aiming at decreasing the therefore develop national action plans problem, aiming at decreasing the number of people suffering such or other appropriate frameworks to number of people suffering such situation. Low income, high energy tackle energy poverty, aiming at situation. Low income, high energy expenditure, and poor energy decreasing the number of energy poor expenditure, and poor energy efficiency of homes are relevant customers. Low income, high energy efficiency of homes are, among factors in designing indicators for the expenditure, and poor energy others, relevant factors in designing measurement of energy poverty. In any efficiency of homes are relevant indicators for the measurement of event, Member States should ensure factors in designing indicators for the energy poverty .In any event, Member the necessary energy supply for measurement of energy poverty. In any States should ensure the necessary vulnerable and energy poor customers. event, Member States should ensure energy supply for vulnerable and

In doing so, an integrated approach, the necessary energy supply for energy poor customers. In doing so, an such as in the framework of energy and vulnerable and energy poor customers. integrated approach, such as in the social policy, could be used and In doing so, an integrated approach, framework of energy and social policy, measures could include social policies such as in the framework of energy and could be used and measures could or energy efficiency improvements for social policy, could be used and include social policies or energy housing. At the very least, this measures could include social policies efficiency improvements for housing. Directive should allow national or energy efficiency improvements for At the very least, this Directive should

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policies in favour of vulnerable and housing. This Directive should allow national policies in favour of energy poor customers. enhance national policies in favour of vulnerable and energy poor customers.

vulnerable and energy poor customers.

• (42) 

  Distribution system operators (42) Distribution system operators have to cost-efficiently integrate new have to cost-efficiently integrate new electricity generation especially electricity generation especially generating installations using generating installations using renewable energy sources and new renewable energy sources and new loads such as heat pumps and electric loads such as heat pumps and electric vehicles. For this purpose distribution vehicles. For this purpose distribution system operators should be enabled system operators should be enabled and incentivised to use services from and incentivised to use services from distributed energy resources such as distributed energy resources such as demand response and energy storage, demand response and energy storage, based on market procedures, in order based on market procedures, in order to efficiently operate their networks to efficiently operate their networks and avoid costly network expansions. and avoid costly network expansions. Member States should put in place Member States should put in place appropriate measures such as national appropriate measures such as national network codes and market rules, and network codes and market rules, and incentivise distribution system incentivise distribution system operators through network tariffs operators through network tariffs which do not create obstacles to which do not create obstacles to flexibility or to the improvement of flexibility or to the improvement of energy efficiency in the grid. Member energy efficiency in the grid. Member States should also introduce network States should also introduce network development plans for distribution development plans for distribution systems in order to support the systems in order to support the integration of generating installations integration of generating installations using renewable energy sources, using renewable energy sources, facilitate the development of storage facilitate the development of storage facilities and the electrification of the facilities and the electrification of the transport sector, and provide to system transport sector, and provide to system users adequate information regarding users adequate information regarding the foreseen expansions or upgrades of the foreseen expansions or upgrades of

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the network, as currently such the network, as currently such procedure does not exist in the procedure does not exist in the majority of Member States. majority of Member States.

(42a) Network operators should not own, develop, manage or operate energy storage facilities. In the new electricity market design storage services should be market-based and competitive. Consequently, crosssubsidization between storage and the regulated function of distribution or transmission of electricity should be avoided. Such restriction on storage facilities ownership is to prevent distortion of competition, eliminate the risk of discrimination, safeguard fair access to storage services to all market participants and to foster effective and efficient use of storage facilities, beyond the operation of the distribution or transmission system. This should be interpreted and applied in accordance with the rights and principles established under the Charter of Fundamental Rights of the European Union, in particular the freedom to conduct a business and the right to property guaranteed by Articles 16 and 17 of the Charter.

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• (43) 

  Non-discriminatory access to the (43) Non-discriminatory access to the distribution network determines distribution network determines downstream access to customers at downstream access to customers at retail level. To create a level playing retail level. To create a level playing field at retail level, the activities of field at retail level, the activities of distribution system operators should distribution system operators should therefore be monitored so that they are therefore be monitored so that they are prevented from taking advantage of prevented from taking advantage of their vertical integration as regards their vertical integration as regards their competitive position on the their competitive position on the market, in particular in relation to market, in particular in relation to household and small non-household household and small non-household customers. customers.

• (44) 

  Where a closed distribution AM 21 (44) Where a closed distribution system is used to ensure the optimal (44) Where a closed distribution system is used to ensure the optimal efficiency of an integrated energy system is used to ensure the optimal efficiency of an integrated energy supply requiring specific operational efficiency of an integrated energy supply requiring specific operational standards, or a closed distribution supply requiring specific operational standards, or a closed distribution system is maintained primarily for the standards, or when a closed system is maintained primarily for the use of the owner of the system, it distribution system is maintained use of the owner of the system, it should be possible to exempt the primarily for the use of the owner of should be possible to exempt the distribution system operator from the system, it should be possible to distribution system operator from obligations which would constitute an exempt the distribution system obligations which would constitute an unnecessary administrative burden operator from obligations which would unnecessary administrative burden because of the particular nature of the constitute an unnecessary because of the particular nature of the relationship between the distribution administrative burden because of the relationship between the distribution system operator and the users of the particular nature of the relationship system operator and the users of the system. Industrial, commercial or between the distribution system system. Industrial, commercial or shared services sites such as train operator and the users of the system. shared services sites such as train station buildings, airports, hospitals, Industrial, commercial or shared station buildings, airports, hospitals, large camping sites with integrated services sites such as train station large camping sites with integrated facilities or chemical industry sites can buildings, airports, hospitals, large facilities or chemical industry sites can include closed distribution systems camping sites with integrated facilities include closed distribution systems because of the specialised nature of or chemical industry sites can include because of the specialised nature of their operations. closed distribution systems because of their operations.

  the specialised nature of their operations.

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• (45) 

  In order to secure competition (45) In order to secure competition and the supply of electricity at the most and the supply of electricity at the most competitive price, Member States and competitive price, Member States and national regulatory authorities should national regulatory authorities should facilitate cross-border access for new facilitate cross-border access for new suppliers of electricity from different suppliers of electricity from different energy sources as well as for new energy sources as well as for new providers of power generation. providers of power generation.

• (46) 

  Without effective separation of (46) Without effective separation of networks from activities of generation networks from activities of generation and supply (effective unbundling), and supply (effective unbundling), there is an inherent risk of there is an inherent risk of discrimination not only in the discrimination not only in the operation of the network but also in the operation of the network but also in the incentives for vertically integrated incentives for vertically integrated undertakings to invest adequately in undertakings to invest adequately in their networks. their networks.

• (47) 

  Only the removal of the (47) Only the removal of the incentive for vertically integrated incentive for vertically integrated undertakings to discriminate against undertakings to discriminate against competitors as regards network access competitors as regards network access and investment can ensure effective and investment can ensure effective unbundling. Ownership unbundling, unbundling. Ownership unbundling, which implies the appointment of the which implies the appointment of the network owner as the system operator network owner as the system operator and its independence from any supply and its independence from any supply and production interests, is clearly an and production interests, is clearly an effective and stable way to solve the effective and stable way to solve the inherent conflict of interests and to inherent conflict of interests and to ensure security of supply. For that ensure security of supply. For that reason, the European Parliament, in its reason, the European Parliament, in its resolution of 10 July 2007 on prospects resolution of 10 July 2007 on prospects

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for the internal gas and electricity for the internal gas and electricity market 17 referred to ownership market referred to ownership unbundling at transmission level as the unbundling at transmission level as the most effective tool to promote most effective tool to promote investments in infrastructure in a noninvestments in infrastructure in a nondiscriminatory way, fair access to the discriminatory way, fair access to the network for new entrants and network for new entrants and transparency in the market. Under transparency in the market. Under ownership unbundling, Member States ownership unbundling, Member States should therefore be required to ensure should therefore be required to ensure that the same person or persons are not that the same person or persons are not entitled to exercise control over a entitled to exercise control over a generation or supply undertaking and, generation or supply undertaking and, at the same time, exercise control or at the same time, exercise control or any right over a transmission system any right over a transmission system operator or transmission system. operator or transmission system.

Conversely, control over a Conversely, control over a transmission system or transmission transmission system or transmission system operator should preclude the system operator should preclude the possibility of exercising control or any possibility of exercising control or any right over a generation or supply right over a generation or supply undertaking. Within those limits, a undertaking. Within those limits, a generation or supply undertaking generation or supply undertaking should be able to have a minority should be able to have a minority shareholding in a transmission system shareholding in a transmission system operator or transmission system. operator or transmission system.

17 OJ C 175 E, 10.7.2008, p.206.

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• (48) 

  Any system for unbundling (48) Any system for unbundling should be effective in removing any should be effective in removing any conflict of interests between producers, conflict of interests between producers, suppliers and transmission system suppliers and transmission system operators, in order to create incentives operators, in order to create incentives for the necessary investments and for the necessary investments and guarantee the access of new market guarantee the access of new market entrants under a transparent and entrants under a transparent and efficient regulatory regime and should efficient regulatory regime and should not create an overly onerous regulatory not create an overly onerous regulatory regime for national regulatory regime for national regulatory authorities. authorities.

• (49) 

  Since ownership unbundling (49) Since ownership unbundling requires, in some instances, the requires, in some instances, the restructuring of undertakings, Member restructuring of undertakings, Member States that decide to implement States that decide to implement ownership unbundling should be ownership unbundling should be granted additional time to apply the granted additional time to apply the relevant provisions. In view of the relevant provisions. In view of the vertical links between the electricity vertical links between the electricity and gas sectors, the unbundling and gas sectors, the unbundling provisions should apply across the two provisions should apply across the two sectors. sectors.

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• (50) 

  Under ownership unbundling, to (50) Under ownership unbundling, to ensure full independence of network ensure full independence of network operation from supply and generation operation from supply and generation interests and to prevent exchanges of interests and to prevent exchanges of any confidential information, the same any confidential information, the same person should not be a member of the person should not be a member of the managing boards of both a managing boards of both a transmission system operator or a transmission system operator or a transmission system and an transmission system and an undertaking performing any of the undertaking performing any of the functions of generation or supply. For functions of generation or supply. For the same reason, the same person the same reason, the same person should not be entitled to appoint should not be entitled to appoint members of the managing boards of a members of the managing boards of a transmission system operator or a transmission system operator or a transmission system and to exercise transmission system and to exercise control or any right over a generation control or any right over a generation or supply undertaking. or supply undertaking.

• (51) 

  The setting up of a system (51) The setting up of a system operator or a transmission operator that operator or a transmission operator that is independent from supply and is independent from supply and generation interests should enable a generation interests should enable a vertically integrated undertaking to vertically integrated undertaking to maintain its ownership of network maintain its ownership of network assets whilst ensuring effective assets whilst ensuring effective separation of interests, provided that separation of interests, provided that such independent system operator or such independent system operator or such independent transmission such independent transmission operator performs all the functions of a operator performs all the functions of a system operator and detailed regulation system operator and detailed regulation and extensive regulatory control and extensive regulatory control mechanisms are put in place. mechanisms are put in place.

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• (52) 

  Where, on 3 September 2009, an (52) Where, on 3 September 2009, an undertaking owning a transmission undertaking owning a transmission system was part of a vertically system was part of a vertically integrated undertaking, Member States integrated undertaking, Member States should therefore be given a choice should therefore be given a choice between ownership unbundling and between ownership unbundling and setting up a system operator or setting up a system operator or transmission operator which is transmission operator which is independent from supply and independent from supply and generation interests. generation interests.

• (53) 

  To preserve fully the interests of (53) To preserve fully the interests of the shareholders of vertically the shareholders of vertically integrated undertakings, Member integrated undertakings, Member

States should have the choice of States should have the choice of implementing ownership unbundling implementing ownership unbundling either by direct divestiture or by either by direct divestiture or by splitting the shares of the integrated splitting the shares of the integrated undertaking into shares of the network undertaking into shares of the network undertaking and shares of the undertaking and shares of the remaining supply and generation remaining supply and generation undertaking, provided that the undertaking, provided that the requirements resulting from ownership requirements resulting from ownership unbundling are complied with. unbundling are complied with.

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• (54) 

  The full effectiveness of the (54) The full effectiveness of the independent system operator or independent system operator or independent transmission operator independent transmission operator solutions should be ensured by way of solutions should be ensured by way of specific additional rules. The rules on specific additional rules. The rules on the independent transmission operator the independent transmission operator provide an appropriate regulatory provide an appropriate regulatory framework to guarantee fair framework to guarantee fair competition, sufficient investment, competition, sufficient investment, access for new market entrants and the access for new market entrants and the integration of electricity markets. integration of electricity markets.

Effective unbundling through the Effective unbundling through the independent transmission operator independent transmission operator provisions should be based on a pillar provisions should be based on a pillar of organisational measures and of organisational measures and measures relating to the governance of measures relating to the governance of transmission system operators and on a transmission system operators and on a pillar of measures relating to pillar of measures relating to investment, connecting new production investment, connecting new production capacities to the network and market capacities to the network and market integration through regional integration through regional cooperation. The independence of the cooperation. The independence of the transmission operator should also, inter transmission operator should also, inter alia, be ensured through certain alia, be ensured through certain

‘cooling-off’ periods during which no ‘cooling-off’ periods during which no management or other relevant activity management or other relevant activity giving access to the same information giving access to the same information as could have been obtained in a as could have been obtained in a managerial position is exercised in the managerial position is exercised in the vertically integrated undertaking. vertically integrated undertaking.

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• (55) 

  A Member State has the right to (55) A Member State has the right to opt for full ownership unbundling in its opt for full ownership unbundling in its territory. Where a Member State has territory. Where a Member State has exercised that right, an undertaking exercised that right, an undertaking does not have the right to set up an does not have the right to set up an independent system operator or an independent system operator or an independent transmission operator. independent transmission operator. Furthermore, an undertaking Furthermore, an undertaking performing any of the functions of performing any of the functions of generation or supply cannot directly or generation or supply cannot directly or indirectly exercise control or any right indirectly exercise control or any right over a transmission system operator over a transmission system operator from a Member State that has opted for from a Member State that has opted for full ownership unbundling. full ownership unbundling.

• (56) 

  The implementation of effective (56) The implementation of effective unbundling should respect the unbundling should respect the principle of non-discrimination principle of non-discrimination between the public and private sectors. between the public and private sectors. To that end, the same person should To that end, the same person should not be able to exercise control or any not be able to exercise control or any right, in violation of the rules of right, in violation of the rules of ownership unbundling or the ownership unbundling or the independent system operator option, independent system operator option, solely or jointly, over the composition, solely or jointly, over the composition, voting or decision of the bodies of both voting or decision of the bodies of both the transmission system operators or the transmission system operators or the transmission systems and the the transmission systems and the generation or supply undertakings. generation or supply undertakings. With regard to ownership unbundling With regard to ownership unbundling and the independent system operator and the independent system operator solution, provided that the Member solution, provided that the Member State in question is able to demonstrate State in question is able to demonstrate that the requirement is complied with, that the requirement is complied with, two separate public bodies should be two separate public bodies should be able to control generation and supply able to control generation and supply activities on the one hand and activities on the one hand and transmission activities on the other. transmission activities on the other.

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• (57) 

  Fully effective separation of (57) Fully effective separation of network activities from supply and network activities from supply and generation activities should apply generation activities should apply throughout the Union to both Union throughout the Union to both Union and non- Union undertakings. To and non- Union undertakings. To ensure that network activities and ensure that network activities and supply and generation activities supply and generation activities throughout the Union remain throughout the Union remain independent from each other, independent from each other, regulatory authorities should be regulatory authorities should be empowered to refuse certification to empowered to refuse certification to transmission system operators that do transmission system operators that do not comply with the unbundling rules. not comply with the unbundling rules. To ensure the consistent application of To ensure the consistent application of those rules across the Union, the those rules across the Union, the regulatory authorities should take regulatory authorities should take utmost account of the Commission’s utmost account of the Commission’s opinion when the former take decisions opinion when the former take decisions on certification. To ensure, in addition, on certification. To ensure, in addition, respect for the international obligations respect for the international obligations of the Union, and solidarity and energy of the Union, and solidarity and energy security within the Union, the security within the Union, the

Commission should have the right to Commission should have the right to give an opinion on certification in give an opinion on certification in relation to a transmission system relation to a transmission system owner or a transmission system owner or a transmission system operator which is controlled by a operator which is controlled by a person or persons from a third country person or persons from a third country or third countries. or third countries.

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• (58) 

  Authorisation procedures should (58) Authorisation procedures should not lead to an administrative burden not lead to an administrative burden disproportionate to the size and disproportionate to the size and potential impact of electricity potential impact of electricity producers. Unduly lengthy producers. Unduly lengthy authorisation procedures may authorisation procedures may constitute a barrier to access for new constitute a barrier to access for new market entrants. market entrants.

• (59) 

  Energy regulators need to be (59) Energy regulators need to be able to take decisions in relation to all able to take decisions in relation to all relevant regulatory issues if the relevant regulatory issues if the internal market in electricity is to internal market in electricity is to function properly, and to be fully function properly, and to be fully independent from any other public or independent from any other public or private interests. This precludes neither private interests. This precludes neither judicial review nor parliamentary judicial review nor parliamentary supervision in accordance with the supervision in accordance with the constitutional laws of the Member constitutional laws of the Member

States. In addition, approval of the States. In addition, approval of the budget of the regulator by the national budget of the regulator by the national legislator does not constitute an legislator does not constitute an obstacle to budgetary autonomy. The obstacle to budgetary autonomy. The provisions relating to the autonomy in provisions relating to the autonomy in the implementation of the allocated the implementation of the allocated budget of the regulatory authority budget of the regulatory authority should be implemented in the should be implemented in the framework defined by national framework defined by national budgetary law and rules. While budgetary law and rules. While contributing to the independence of the contributing to the independence of the national regulatory authority from any [] regulatory authority from any political or economic interest through political or economic interest through an appropriate rotation scheme, it an appropriate rotation scheme, it should be possible for Member States should be possible for Member States to take due account of the availability to take due account of the availability of human resources and of the size of of human resources and of the size of the board. the board.

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• (60) 

  National regulatory authorities (60) National regulatory authorities should be able to fix or approve tariffs, should be able to fix or approve tariffs, or the methodologies underlying the or the methodologies underlying the calculation of the tariffs, on the basis calculation of the tariffs, on the basis of a proposal by the transmission of a proposal by the transmission system operator or distribution system system operator or distribution system operator(s), or on the basis of a operator(s), or on the basis of a proposal agreed between those proposal agreed between those operator(s) and the users of the operator(s) and the users of the network. In carrying out those tasks, network. In carrying out those tasks, national regulatory authorities should national regulatory authorities should ensure that transmission and ensure that transmission and distribution tariffs are nondistribution tariffs are nondiscriminatory and cost-reflective, and discriminatory and cost-reflective, and should take account of the long-term, should take account of the long-term, marginal, avoided network costs from marginal, avoided network costs from distributed generation and demand-side distributed generation and demand-side management measures. management measures.

• (61) 

  Energy regulators should have (61) Energy regulators should have the power to issue binding decisions in the power to issue binding decisions in relation to electricity undertakings and relation to electricity undertakings and to impose effective, proportionate and to impose effective, proportionate and dissuasive penalties on electricity dissuasive penalties on electricity undertakings which fail to comply with undertakings which fail to comply with their obligations or to propose that a their obligations or to propose that a competent court impose such penalties competent court impose such penalties on them. To this end , regulatory on them. To this end, regulatory authorities should be able to request authorities should be able to request relevant information from electricity relevant information from electricity undertakings, make appropriate and undertakings, make appropriate and sufficient investigations and settle sufficient investigations and settle disputes. Energy regulators should also disputes. Energy regulators should also be granted the power to decide, be granted the power to decide, irrespective of the application of irrespective of the application of competition rules, on appropriate competition rules, on appropriate

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measures ensuring customer benefits measures ensuring customer benefits through the promotion of effective through the promotion of effective competition necessary for the proper competition necessary for the proper functioning of the internal market in functioning of the internal market in electricity. electricity.

• (62) 

  Energy regulators should also (62) Energy regulators should also be be granted the power to contribute to granted the power to contribute to ensuring high standards of universal ensuring high standards of universal and public service in compliance with and public service in compliance with market opening, to the protection of market opening, to the protection of vulnerable customers, and to the full vulnerable customers, and to the full effectiveness of consumer protection effectiveness of consumer protection measures. Those provisions should be measures. Those provisions should be without prejudice to both the without prejudice to both the

Commission’s powers concerning the Commission’s powers concerning the application of competition rules application of competition rules including the examination of mergers including the examination of mergers with a Union dimension, and the rules with a Union dimension, and the rules on the internal market such as the free on the internal market such as the free movement of capital. The independent movement of capital. The independent body to which a party affected by the body to which a party affected by the decision of a national regulator has a decision of a national regulator has a right to appeal could be a court or right to appeal could be a court or other tribunal empowered to conduct a other tribunal empowered to conduct a judicial review. judicial review.

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(62a) The Electricity and Gas Directives do not deprive the government of the possibility of establishing and issuing its national energy policy. This means that, depending on the national constitution, it could be the government’s competency to determine the policy framework within which the regulatory authorities must operate, for instance concerning security of supply. However, general energy policy guidelines issued by the government must not impinge on the regulatory authority independence and autonomy.

• (63) 

  Under [recast of Regulation (63) Under [recast of Regulation

714/2009 as proposed by 714/2009 as proposed by

COM(2016)861 i/2], the Commission COM(2016)861 i/2], the Commission may adopt guidelines or network codes may adopt guidelines or network codes to achieve the necessary degree of to achieve the necessary degree of harmonisation. Such guidelines or harmonisation. Such guidelines or network codes, which constitute network codes, which constitute binding implementing measures, are, binding implementing measures, are, also with regard to certain provisions also with regard to certain provisions of this Directive, a useful tool which of this Directive, a useful tool which can be adapted quickly where can be adapted quickly where necessary. necessary.

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• (64) 

  Member States and the Energy (64) Member States and the Energy

Community Contracting Parties should Community Contracting Parties should closely cooperate on all matters closely cooperate on all matters concerning the development of an concerning the development of an integrated electricity trading region integrated electricity trading region and should take no measures that and should take no measures that endanger the further integration of endanger the further integration of electricity markets or security of electricity markets or security of supply of Member States and supply of Member States and

Contracting Parties. Contracting Parties.

• (65) 

  This Directive should be read (65) This Directive should be read together with [recast of Regulation together with [recast of Regulation 714/2009 i as proposed by 714/2009 as proposed by

COM(2016)861 i/2] which lays down COM(2016)861 i/2] which lays down key principles of the new market key principles of the new market design for electricity which will enable design for electricity which will enable better reward for flexibility, provide better reward for flexibility, provide adequate price signals and ensure the adequate price signals and ensure the development of functioning integrated development of functioning integrated short-term markets. [recast of short-term markets. [recast of

Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by

COM(2016)861 i/2] also sets out new COM(2016)861 i/2] also sets out new rules in various areas including rules in various areas including capacity mechanisms and cooperation capacity mechanisms and cooperation between transmission system between transmission system operators. operators.

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• (66) 

  Since the objective of this (66) Since the objective of this

Directive, namely the creation of a Directive, namely the creation of a fully operational internal electricity fully operational internal electricity market, cannot be sufficiently achieved market, cannot be sufficiently achieved by the Member States and can by the Member States and can therefore be better achieved at Union therefore be better achieved at Union level, the Union may adopt measures, level, the Union may adopt measures, in accordance with the principle of in accordance with the principle of subsidiarity as set out in Article 5 of subsidiarity as set out in Article 5 of the Treaty on the European Union. In the Treaty on the European Union. In accordance with the principle of accordance with the principle of proportionality, as set out in that proportionality, as set out in that

Article, this Directive does not go Article, this Directive does not go beyond what is necessary in order to beyond what is necessary in order to achieve that objective. achieve that objective.

• (67) 

  This Directive respects the (67) This Directive respects the fundamental rights, and observes the fundamental rights, and observes the principles, recognised in particular by principles, recognised in particular by the Charter of Fundamental Rights of the Charter of Fundamental Rights of the European Union. the European Union.

• (68) 

  In order to provide the minimum [] degree of harmonisation required to achieve the aim of this Directive, the power to adopt acts in accordance with

Article 290 of the Treaty should be delegated to the Commission to establish guidelines on the extent of the duties of the regulatory authorities to cooperate with each other and with the Agency for the Cooperation of

Energy Regulators (the 'Agency') and setting out the details of the procedure.

It is of particular importance that the

Commission carry out appropriate consultations during its preparatory

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work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional

Agreement on Better Law-Making of

13 April 2016 18 . In particular, to ensure equal participation in the preparation of delegated acts, the

European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of the delegated acts.

• (69) 

  In order to ensure uniform AM 22 (69) In order to ensure uniform conditions for the implementation of (69) In order to ensure uniform conditions for the implementation of this Directive, implementing powers conditions for the implementation of this Directive, implementing powers should be conferred on the this Directive, implementing powers should be conferred on the

Commission in order to determine a should be conferred on the Commission in order to determine common European data format and Commission in order to determine a interoperability for a common non-discriminatory and transparent common European data format and European data format and nonprocedures for accessing the data on non-discriminatory and transparent discriminatory and transparent metering, consumption data as well as procedures for accessing the data on procedures for accessing the data on data required for consumer switching. metering, consumption data as well as metering, consumption data as well as Those powers should be exercised in data required for consumer switching. data required for consumer switching. accordance with Regulation (EU) No Those powers should be exercised in Those powers should be exercised in 182/2011 of the European Parliament accordance with Regulation (EU) No accordance with Regulation (EU) No and of the Council 19 . 182/2011 of the European Parliament 182/2011 of the European Parliament

18 OJ L 123, 12.5.2016, p. 1.

19 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

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and of the Council 38 . In order to and of the Council 20 . ensure that such a common European data format supports marked-based competition and contributes to ensuring interoperability between energy services, the Commission may request if appropriate that data standards are drawn up by the relevant European standardisation organisations.

• (70) 

  The obligation to transpose this (70) The obligation to transpose this

Directive into national law should be Directive into national law should be confined to those provisions which confined to those provisions which represent a substantive amendment as represent a substantive amendment as compared to the earlier Directive. The compared to the earlier Directive. The obligation to transpose the provisions obligation to transpose the provisions which are unchanged arises under the which are unchanged arises under the earlier Directive. earlier Directive.

• (71) 

  In accordance with the Joint (71) In accordance with the Joint

Political Declaration of 28 September Political Declaration of 28 September

2011 of Member States and the 2011 of Member States and the

Commission on explanatory Commission on explanatory documents 21 , Member States have documents 22 , Member States have undertaken to accompany, in justified undertaken to accompany, in justified cases, the notification of their cases, the notification of their transposition measures with one or transposition measures with one or more documents explaining the more documents explaining the relationship between the components relationship between the components of a directive and the corresponding of a directive and the corresponding parts of national transposition parts of national transposition

20 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning

mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 21 OJ C 369, 17.12.2011, p. 14.

22 OJ C 369, 17.12.2011, p. 14.

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instruments. With regard to this instruments. With regard to this

Directive, the legislator considers the Directive, the legislator considers the transmission of such documents to be transmission of such documents to be justified. justified.

• (72) 

  This Directive should be without (72) This Directive should be without prejudice to the obligations of the prejudice to the obligations of the

Member States relating to the time Member States relating to the timelimit for the transposition into national limit for the transposition into national law and the date of application of the law and the date of application of the

Directive set out in Annex IV. Directive set out in Annex IV.

HAVE ADOPTED THIS HAVE ADOPTED THIS

DIRECTIVE: DIRECTIVE:

CHAPTER I SUBJECT MATTER AND DEFINITIONS

Article 1 Subject matter This Directive establishes common AM 23

rules for the generation, transmission, This Directive establishes common This Directive establishes common distribution, storage and supply of rules for the generation, transmission, rules for the generation, transmission, electricity, together with consumer distribution, storage and supply of distribution , storage and supply of protection provisions, with a view to electricity, together with consumer electricity, together with consumer creating truly integrated competitive, protection provisions, with a view to protection provisions, with a view to consumer-centred and flexible creating truly integrated competitive, creating truly integrated competitive , electricity markets in the Union. Using consumer-centered and flexible consumer-centred and flexible, fair the advantages of an integrated market, electricity markets in the Union. Using and transparent electricity markets in the Directive aims at ensuring the advantages of an integrated market, the Union. Using the advantages of an affordable energy prices for the Directive aims at ensuring integrated market, the Directive aims consumers, a high degree of security of affordable, transparent energy costs at ensuring affordable energy prices for supply and a smooth transition towards for consumers, a high degree of consumers, a high degree of security of a decarbonised energy system. It lays security of supply and a smooth supply and a smooth transition towards down key rules relating to the transition towards a decarbonised and a [] low-carbon energy system. It lays organisation and functioning of the sustainable energy system. It lays down key rules relating to the European electricity sector, in down key rules relating to the organisation and functioning of the

particular rules on consumer organisation and functioning of the European electricity sector, in particular rules on consumer

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empowerment and protection, on open European electricity sector, in empowerment and protection, on open access to the integrated market, on particular rules on consumer access to the integrated market, on third party access to transmission and empowerment and protection, on open third party access to transmission and distribution infrastructure, unbundling access to the integrated market, on distribution infrastructure, unbundling rules, and on independent national third party access to transmission and rules, and on independent national energy regulators. distribution infrastructure, unbundling energy regulators.

rules, and on independent national energy regulators. Article 2 Definitions

For the purposes of this Directive, the For the purposes of this Directive, the following definitions apply: following definitions apply: 1. 'customer’ means a wholesale or 1. 'customer’ means a wholesale or final customer of electricity; final customer of electricity; 2. 'wholesale customer' means a natural 2. 'wholesale customer' means a natural or legal person purchasing electricity or legal person purchasing electricity for the purpose of resale inside or for the purpose of resale inside or outside the system where he is outside the system where he is established; established; 3. ‘final customer’ means a customer 3. ‘final customer’ means a customer purchasing electricity for his own use; purchasing electricity for his own use; 4. 'household customer' means a 4. 'household customer' means a customer purchasing electricity for his customer purchasing electricity for his own household consumption, own household consumption, excluding commercial or professional excluding commercial or professional activities; activities; 5. 'non-household customer' means a 5. 'non-household customer' means a natural or legal person purchasing natural or legal person purchasing electricity which is not for their own electricity which is not for their own household use and includes producers household use and includes producers industrial customers, small and industrial customers, small and medium sized enterprises, businesses medium sized enterprises, businesses and wholesale customers; and wholesale customers;

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5a. 'microenterprise' means an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million; 5b. 'small enterprise' means an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million;

• 6. 

  ‘active customer’ means a customer AM 24 6. ‘active customer’ means a final or a group of jointly acting customers 6. ‘active customer’ means a final customer or a group of jointly acting who consume, store or sell electricity customer or a group of jointly acting final customers who consume or store generated on their premises, including final customers who consume, store or [] electricity generated on the same through aggregators, or participate in sell electricity generated within their site or sells self-generated electricity demand response or energy efficiency premises, including through [], provided that these activities do not schemes provided that these activities aggregators or suppliers or traders, or constitute their primary commercial or do not constitute their primary participate in demand response or professional activity; commercial or professional activity; energy efficiency schemes provided

  that these activities do not constitute their primary commercial or professional activity; 6a. ‘electricity markets’ shall include over-the-counter markets and electricity exchanges for trading energy, capacity, balancing and ancillary services in all timeframes, including forward, day-ahead and intra-day markets;

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6b 'market participant' means a natural or legal person buying, selling or generating electricity, engaging in aggregation or storage services, including the placing of orders to trade, in one or more electricity markets including balancing energy markets;

• 7. 

  'local energy community' means: an AM 25 7. '[] energy community' means: [] a association, a cooperative, a 7. 'local energy community' means legal entity which is based on partnership, a non-profit organisation an association, a cooperative, a voluntary and open participation, or other legal entity which is partnership, a non-profit organisation, effectively controlled by [] effectively controlled by local SME or other legal entity which is shareholders or members who are shareholders or members, generally based on voluntary and open natural persons, local authorities, value rather than profit-driven, participation and is effectively including municipalities, or small involved in distributed generation and controlled by local shareholders or enterprises and microenterprises []. in performing activities of a members, the predominant aim of The primary purpose of an energy distribution system operator, supplier which is to provide local community is to provide or aggregator at local level, including environmental, economic or social environmental, economic or social across borders; community benefits for its members community benefits for its members

  or the local area or areas where it or the local areas where it operates operates rather than where it generates rather than financial profits. An profits, and which is involved in energy community can be engaged [] activities such as distributed in [] electricity generation, generation, storage, supply, provision distribution and supply, of energy efficiency services, consumption, aggregation, storage aggregation, electro-mobility and or energy efficiency services, distribution system operation, generation of renewable electricity [] including across borders; or provide other energy services to its shareholders or members [];

• 8. 

  'supply' means the sale, including 8. 'supply' means the sale, including resale, of electricity to customers; resale, of electricity to customers;

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• 9. 

  ‘electricity supply contract’ means a 9. ‘electricity supply contract’ means a contract for the supply of electricity, contract for the supply of electricity, but does not include an electricity but does not include an electricity derivative; derivative; 10. ‘electricity derivative’ means a 10. ‘electricity derivative’ means a financial instrument specified in financial instrument specified in points points 5, 6 or 7 of Section C of 5, 6 or 7 of Section C of Annex I to Annex I to Directive 2004/39/EC i of Directive 2004/39/EC i of the European the European Parliament and of the Parliament and of the Council 24 , where Council 23 , where that instrument that instrument relates to electricity; relates to electricity;

• 11. 

  ‘dynamic electricity price contract’ 11. ‘dynamic electricity price contract’ means an electricity supply contract means an electricity supply contract between a supplier and a final between a supplier and a final customer that reflects the price at the customer that reflects the price spot market, including at the day ahead variation at the spot markets market at intervals at least equal to the including day ahead and intraday market settlement frequency; markets, [] at intervals at least equal to

  the market settlement frequency; 12. 'contract termination fee‘ means 12. 'contract termination fee‘ means any charge or penalty imposed on any charge or penalty imposed on customers by suppliers or aggregators customers by suppliers or [] market for withdrawing from an electricity participants engaged in aggregation supply or service contract; for withdrawing from an electricity

  supply or service contract;

23 Directive 2004/39/EC i of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (OJ L 145, 30.4.2004, p. 1).

24 Directive 2004/39/EC i of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (OJ L 145, 30.4.2004, p. 1).

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• 13. 

  'switching related fee' means any 13. 'switching related fee' means any charge or penalty imposed on charge or penalty imposed on customers by suppliers or system customers by suppliers or market operators directly or indirectly for participants engaged in aggregation changing suppliers, including contract or system operators directly or termination fees; indirectly for changing suppliers or

  market participants engaged in aggregation, including contract termination fees;

• 14. 

  ‘aggregator’ means a market 14. [] ‘aggregation’ means a function participant that combines multiple taken by a natural or legal person [] customer loads or generated electricity that combines multiple customer loads for sale, for purchase or auction in any or generated electricity for sale, for organised energy market; purchase or auction in any []

  electricity market; 15. 'independent aggregator' means an AM 26 15. 'independent aggregator' means [] a aggregator that is not affiliated to a 15. 'independent aggregator' means market participant that performs supplier or any other market an aggregator that is not affiliated to aggregation that is not affiliated to its participant; the supplier of the customer; customer's [] supplier []; 16. 'demand response' means the 16. 'demand response' means the change of electricity load by final change of electricity load by final customers from their normal or current customers from their normal or current consumption patterns in response to consumption patterns in response to market signals, including time-variable market signals, including time-variable electricity prices or incentive electricity prices or incentive payments, or in response to acceptance payments, or in response to acceptance of the final customer's bid, alone or of the final customer's bid, alone or through aggregation, to sell demand through aggregation, to sell demand reduction or increase at a price in reduction or increase at a price in organised markets as defined in organised markets as defined in Commission Implementing Regulation Commission Implementing Regulation (EU) No 1348/2014 i 25 ; (EU) No 1348/2014 26 ;

25 Commission Implementing Regulation (EU) No 1348/2014 i of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 i of the European Parliament and the Council on wholesale energy market integrity and transparency (OJ L 363, 18.12.2014, p. 121).

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16a. 'billing information' means all the information provided in final customers' bills, apart from a request for payment;

• 17. 

  ‘conventional meter’ means an 17. ‘conventional meter’ means an analogue meter or an electronic meter analogue meter or an electronic meter with no capability to both transmit and with no capability to both transmit and receive data; receive data;

• 18. 

  ‘smart metering system’ means an 18. ‘smart metering system’ means an electronic system that can measure electronic system that can measure energy consumption, providing more energy consumption or the amount of information than a conventional meter, electricity put into the grid, and can transmit and receive data for providing more information than a information, monitoring and control conventional meter, and can transmit purposes, using a form of electronic and receive data for information, communication; monitoring and control purposes, using

  a form of electronic communication; 19. ‘interoperability’ means, in the 19. ‘interoperability’ means, in the context of smart metering, the ability context of smart metering, the ability of two or more energy or of two or more energy or communication networks, systems, communication networks, systems, devices, applications or components to devices, applications or components to interwork, to exchange and use interwork, to exchange and use information in order to perform information in order to perform required functions; required functions;

26 Commission Implementing Regulation (EU) No 1348/2014 i of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 i of the European Parliament and the Council on wholesale energy market integrity and transparency (OJ L 363, 18.12.2014, p. 121).

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• 20. 

  ‘near-real time’ means, in the 20. ‘near-real time’ means, in the context of smart metering, the time, context of smart metering, [] a short usually down to seconds, that elapses time period, usually down to seconds between data recording and their or up to the imbalance settlement automated processing and transmission timeframe in the national market []; for use or information purposes;

• 21. 

  ‘best available techniques’ means, 21. ‘best available techniques’ means, in the context of data protection and in the context of data protection and security in a smart metering security in a smart metering environment, the most effective and environment, the most effective and advanced stage in the development of advanced stage in the development of activities and their methods of activities and their methods of operation, which indicates the practical operation, which indicates the practical suitability of particular techniques, suitability of particular techniques, designed to prevent or mitigate risks designed to prevent or mitigate risks on privacy, personal data and security, on privacy, personal data and security, for providing in principle the basis for for providing in principle the basis for complying with the Union data complying with the Union data protection framework; protection framework;

• 22. 

  'distribution' means the transport of 22. 'distribution' means the transport of electricity on high-voltage, mediumelectricity on high-voltage, mediumvoltage and low-voltage distribution voltage and low-voltage distribution systems with a view to its delivery to systems with a view to its delivery to customers, but does not include customers, but does not include supply; supply;

• 23. 

  'distribution system operator' 23. 'distribution system operator' means a natural or legal person means a natural or legal person responsible for operating, ensuring the responsible for operating, ensuring the maintenance of and, if necessary, maintenance of and, if necessary, developing the distribution system in a developing the distribution system in a given area and, where applicable, its given area and, where applicable, its interconnections with other systems interconnections with other systems and for ensuring the long-term ability and for ensuring the long-term ability of the system to meet reasonable of the system to meet reasonable demands for the distribution of demands for the distribution of electricity; electricity;

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• 24. 

  ‘energy efficiency' means the ratio 24. ‘energy efficiency' means the ratio of output of performance, service, of output of performance, service, goods or energy, to input of energy ; goods or energy, to input of energy; 25. ‘energy from renewable sources’ 25. ‘energy from renewable sources’ means energy from renewable nonmeans energy from renewable nonfossil sources, in particular wind, solar fossil sources , in particular wind, solar (solar thermal and solar photovoltaic), (solar thermal and solar photovoltaic), geothermal energy, ambient heat, geothermal energy, ambient heat, hydropower and tide, ocean, wave hydropower and tide, ocean , wave, energy , and combustible renewables: and other ocean energy, hydropower biofuels, bioliquids, biogas, solid and combustible renewables: biofuels, biofuels and combustible wastes of bioliquids, biogas, solid biofuels and renewable origin; combustible wastes of renewable

  origin; 26. ‘distributed generation’ means 26. ‘distributed generation’ means generation plants connected to the generation plants connected to the distribution system; distribution system; 27. 'recharging point' means an 27. 'recharging point' means an interface that is capable of charging interface that is capable of charging one electric vehicle at a time or one electric vehicle at a time or exchanging a battery of one electric exchanging a battery of one electric vehicle at a time; vehicle at a time; 28. 'transmission' means the transport 28. 'transmission' means the transport of electricity on the extra high-voltage of electricity on the extra high-voltage and high-voltage interconnected and high-voltage interconnected system with a view to its delivery to system with a view to its delivery to final customers or to distributors, but final customers or to distributors, but does not include supply; does not include supply;

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• 29. 

  'transmission system operator' 29. 'transmission system operator' means a natural or legal person means a natural or legal person responsible for operating, ensuring the responsible for operating, ensuring the maintenance of and, if necessary, maintenance of and, if necessary, developing the transmission system in developing the transmission system in a given area and, where applicable, its a given area and, where applicable, its interconnections with other systems, interconnections with other systems, and for ensuring the long-term ability and for ensuring the long-term ability of the system to meet reasonable of the system to meet reasonable demands for the transmission of demands for the transmission of electricity; electricity; 30. 'system user' means a natural or 30. 'system user' means a natural or legal person supplying to, or being legal person supplying to, or being supplied by, a transmission or supplied by, a transmission or distribution system; distribution system; 31. 'generation' means the production 31. 'generation' means the production of electricity; of electricity; 32. 'producer' means a natural or legal 32. 'producer' means a natural or legal person generating electricity; person generating electricity;

• 33. 

  'interconnector' means a [ 33. 'interconnector' means an transmission line which crosses or equipment used to link electricity spans a border between bidding zones, systems [] which crosses or spans a between Member States or, up to the border between bidding zones or border of EU jurisdiction, between between Member States or, up to the Member States and third countries ; border of [] Union territorial

  jurisdiction, between Member States

  and third countries; ] 27

• 34. 

  ‘interconnected system’ means a 34. ‘interconnected system’ means a number of transmission and number of transmission and distribution systems linked together by distribution systems linked together by means of one or more interconnectors; means of one or more interconnectors;

27 This definition is not part of the general approach.

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• 35. 

  ‘direct line’ means either an 35. ‘direct line’ means either an electricity line linking an isolated electricity line linking an isolated generation site with an isolated generation site with an isolated customer or an electricity line linking customer or an electricity line linking an electricity producer and an an electricity producer and an electricity supply undertaking to electricity supply undertaking to supply directly their own premises, supply directly their own premises, subsidiaries and customers; subsidiaries and customers; 36. ‘small isolated system’ means any 36. ‘small isolated system’ means any system with consumption of less than system with consumption of less than 3 3 000 GWh in the year 1996, where 000 GWh in the year 1996, where less less than 5 % of annual consumption is than 5 % of annual consumption is obtained through interconnection with obtained through interconnection with other systems; other systems;

  36a. 'small connected system’ means any system with consumption of less than 3 000 GWh in the year 1996, where more than 5 % of annual consumption is obtained through interconnection with other systems;

• 37. 

  ‘ancillary service’ means a service 37. ‘ancillary service’ means a service necessary for the operation of a necessary for the operation of a transmission or distribution system transmission or distribution system including balancing and non-frequency including balancing and non-frequency ancillary services but not congestion ancillary services but not congestion management; management;

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• 38. 

  'non-frequency ancillary service' AM 27 38. 'non-frequency ancillary service' means a service used by a transmission 38. 'non-frequency ancillary service' means a service used by a transmission or distribution system operator for means a service used by a transmission [] system operator for steady state steady state voltage control, fast or distribution system operator for voltage control, fast reactive current reactive current injections, inertia and steady state voltage control, fast injections, inertia for grid stability, black start capability; reactive current injections, inertia for short circuit current, [] black start

  local grid stability, short-circuit capability and island operation current, and black start capability and capability or a service used by a island operation capability; distribution system operator, including storage facility, for steady state voltage control, fast reactive current injections and short circuit current;

• 39. 

  'regional operational centre' means AM 28 39. [] Regional Security the regional operational centre as 39. 'regional coordination centre' Coordinators means the [] Regional defined in Article 32 of the [recast of means the regional coordination centre Security Coordinators pursuant to [] Regulation 714/2009 i as proposed by as established pursuant to Article 32 Article 32 of the [recast of Regulation COM(2016)861 i/2]. of Regulation (EU) … [recast of 714/2009 as proposed by

  Regulation 714/2009 i as proposed by COM(2016)861 i/2]; COM(2016)861 i/2]. (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.) AM 29 39a. ‘fully integrated network 39a. (new) ‘integral part of the components’ means static network transmission system’ means network components that are integrated in components that are integrated in the the transmission or distribution transmission or distribution system, system, including storage facility, including storage facilities, and are and are used for the only purpose of used for the sole purpose of ensuring ensuring a secure and reliable a secure and reliable operation of the operation of the transmission or transmission or distribution system, distribution system but not for however not for balancing or balancing nor congestion congestion management, except for management; the reactive instantaneous restoration of network security in case of network contingencies;

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• 40. 

  'integrated electricity undertaking' 40. 'integrated electricity undertaking' means a vertically or horizontally means a vertically or horizontally integrated undertaking; integrated undertaking; 41. 'vertically integrated undertaking' 41. 'vertically integrated undertaking' means an electricity undertaking or a means an electricity undertaking or a group of electricity undertakings where group of electricity undertakings where the same person or the same persons the same person or the same persons are entitled, directly or indirectly, to are entitled, directly or indirectly, to exercise control, and where the exercise control, and where the undertaking or group of undertakings undertaking or group of undertakings perform at least one of the functions of perform at least one of the functions of transmission or distribution, and at transmission or distribution, and at least one of the functions of generation least one of the functions of generation or supply of electricity; or supply of electricity; 42. 'related undertaking' means 42. 'related undertaking' means affiliated undertakings, within the affiliated undertakings, within the meaning of Article 2(12) of Directive meaning of Article 2(12) of Directive 2013/34 i/EU of the European 2013/34/EU of the European Parliament and of the Council 28 , and Parliament and of the Council 29 and undertakings which belong to the same undertakings which belong to the same shareholders; shareholders; 43. 'horizontally integrated 43. 'horizontally integrated undertaking' means an undertaking undertaking' means an undertaking performing at least one of the functions performing at least one of the functions of generation for sale, or transmission, of generation for sale, or transmission, or distribution, or supply of electricity, or distribution, or supply of electricity, and another non-electricity activity; and another non-electricity activity;

28 Directive 2013/34 i/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC i of the European Parliament and of the Council and repealing Council Directives 78/660/EEC i and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

29 Directive 2013/34 i/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC i of the European Parliament and of the Council and repealing Council Directives 78/660/EEC i and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

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• 44. 

  'control' means rights, contracts or 44. 'control' means rights, contracts or any other means which, either any other means which, either separately or in combination and separately or in combination and having regard to the considerations of having regard to the considerations of fact or law involved, confer the fact or law involved, confer the possibility of exercising decisive possibility of exercising decisive influence on an undertaking, in influence on an undertaking, in particular by: particular by: (a) ownership or the right to use all (a) ownership or the right to use all or part of the assets of an undertaking; or part of the assets of an undertaking; (b) rights or contracts which confer (b) rights or contracts which confer decisive influence on the composition, decisive influence on the composition, voting or decisions of the organs of an voting or decisions of the organs of an undertaking; undertaking; 45. 'electricity undertaking' means any 45. 'electricity undertaking' means any natural or legal person carrying out at natural or legal person carrying out at least one of the following functions: least one of the following functions: generation, transmission, distribution, generation, transmission, distribution, supply, or purchase of electricity, aggregation, demand response, which is responsible for the storage, supply, or purchase of commercial, technical or maintenance electricity, which is responsible for the tasks related to those functions, but commercial, technical or maintenance does not include final customers; tasks related to those functions, but

  does not include final customers; 46. ‘security’ means both security of 46. ‘security’ means both security of supply and provision of electricity, and supply and provision of electricity, and technical safety; technical safety;

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• 47. 

  'energy storage' means, in the AM 30 47. 'energy storage' means, in the electricity system, deferring an amount 47. 'energy storage' means, in the electricity system, [] the conversion of of the electricity that was generated to electricity system, deferring the use of an amount of the electricity that was the moment of use, either as final electricity to a later moment than generated [] into a form of energy energy or converted into another when it was generated or the which can be stored, the storing of energy carrier. conversion of electrical energy into a that energy, and the subsequent

  form of energy which can be stored, direct use or reconversion of that the storing of that energy, and the energy back into electrical energy or subsequent reconversion of that into another energy carrier and use of energy back into electrical energy or that reconverted energy at a later another energy carrier. moment than it was generated; 47a. ‘energy storage facility’ in the electricity system means a facility where energy storage occurs. CHAPTER II GENERAL RULES FOR THE ORGANISATION OF THE SECTOR

  Article 3 Competitive, consumer-centred, flexible and non-discriminatory electricity market 1. Member States shall ensure that AM 31

their national legislation does not 1. Member States shall ensure that 1. Member States shall ensure that unduly hamper cross-border flows of their national legislation does not their national legislation does not electricity, consumer participation unduly hamper cross-border trade and unduly hamper cross-border [] trade of including through demand–side flows of electricity, consumer electricity, consumer participation response, investments into flexible participation including through including through demand–side energy generation, energy storage, the demand–side response, investments response, investments into [] energy deployment of electro-mobility or new into flexible energy generation, energy generation, energy storage, the interconnectors, and that electricity storage, the deployment of electrodeployment of electro-mobility or new prices reflect actual demand and mobility or new interconnectors, and interconnectors between Member supply. that electricity prices reflect actual States, and that electricity prices

demand and supply. reflect actual demand and supply. Any public intervention in electricity

prices shall be subject to conditions in Article 5.

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AM 32

1a. (new) Member States shall ensure 1a. When developing new that their national legislation ensures interconnectors, Member States an equal level-playing field and does shall take into account the electricity not discriminate against any market interconnection targets.

participant, including those from other Member States. AM 33 1b. (new) Without prejudice to the competences in relation to third countries, Members States shall ensure that no undue barriers exist within the internal electricity market as regards market entry, operation and exit. Market participants from third countries shall comply with applicable Union and Member States' laws, including those concerning environmental and safety policy. AM 34 1c. (new) This Directive also sets out means of cooperation among Member States, regulatory authorities and transmission system operators towards the creation of a fully interconnected internal market that increases the integration of renewable electricity, the mechanisms of solidarity among Member States, the free competition and the security of supply.

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• 2. 

  Members States shall ensure that AM 35 2. Members States shall ensure that no undue barriers exist for market 2. Members States shall ensure that no undue barriers exist within the entry and market exit of electricity no undue barriers exist for market internal electricity market as generation and electricity supply entry and market exit of electricity regards [] market entry, operation undertakings. generation, energy storage, demandand [] exit [], without prejudice to

  response and electricity supply those competences which Member undertakings. States retain in relation to third countries. Market participants from third countries, operating within the internal electricity market shall comply with applicable Union and Member States' laws, including those concerning environmental and safety policy.

  2a. Member States shall ensure that electricity undertakings are subject to transparent, proportionate and nondiscriminatory rules, fees and treatment, in particular in the fields of balancing responsibility, access to wholesale markets, access to data, customer switching and billing and, where applicable, in the Member States licensing.

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Article 4 Free choice of electricity supplier Member States shall ensure that all AM 36 Member States shall ensure that all customers are free to purchase Member States shall ensure that all customers are free to purchase electricity from the supplier of their customers are free to purchase electricity from the supplier of their choice. electricity from the producer or choice.

supplier of their choice and are free to contract simultaneously with several suppliers. Article 5 Market based supply prices

• 1. 

  Electricity suppliers shall be free

to determine the price at which they 1. Electricity suppliers shall be free supply electricity to customers. to determine the price at which they Member States shall take appropriate supply electricity to customers. actions to ensure effective competition Member States shall take appropriate

between electricity suppliers. actions to ensure effective competition between electricity suppliers.

• 2. 

  Member States shall ensure the AM 37

protection of energy poor or vulnerable 2. Member States may ensure the 2. Member States shall ensure the customers in a targeted manner by protection of energy poor or vulnerable protection of energy poor or vulnerable other means than public interventions household customers in a targeted customers pursuant to Article 28 [] in the price-setting for the supply of manner by social policy or other by other means than public electricity. means than public interventions in the interventions in the price-setting for

price-setting for the supply of the supply of electricity.

electricity.

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• 3. 

  By way of derogation from

paragraphs 1 and 2, Member States 3. By way of derogation from which apply public interventions in paragraphs 1 and 2, Member States [] price setting for the supply of may apply public interventions in price electricity for energy poor or setting for the supply of electricity vulnerable household customers at the subject to the conditions in [OP: please insert the date of entry into paragraphs 3a and 3b [].

force of this Directive] may continue to apply such public interventions until [OP: insert the date – five years from the entry into force of this

Directive]. Such public interventions shall pursue a general economic interest, be clearly defined, transparent, non-discriminatory, verifiable and guarantee equal access for Union electricity companies to customers.

The interventions shall not go beyond what is necessary to achieve the general economic interest which they pursue, be limited in time and proportionate as regards their beneficiaries.

3a. [] Public interventions pursuant to paragraph 3 shall: (a) pursue a general economic interest; (b) be clearly defined, transparent, non-discriminatory and verifiable []; (c) guarantee equal access for Union electricity companies to customers. The interventions shall not go beyond what is necessary to achieve the general economic interest which they pursue,

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(d) be limited in time and proportionate as regards their beneficiaries. 3b. Public interventions pursuant to paragraph 3 shall: (-a) avoid influencing the wholesale electricity market; (a) not result in additional costs for market participants in a discriminatory way; (b) not lead to direct crosssubsidisation between customers supplied at free market prices and those supplied at regulated supply prices; (c) ensure that all beneficiaries of such public intervention have the possibility to choose competitive market offers and are directly informed of the availability of offers and savings on the competitive market, in particular dynamic electricity price contracts, at least every quarter and that they are provided with assistance to switch to a market based offer; (d) ensure that, pursuant to Article 19 and 21, all beneficiaries of such public interventions are entitled to and are offered to have smart meters being installed at no extra costs for these customers and are directly informed of the possibility to install smart meters and are provided with necessary assistance.

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3c. By way of derogation from paragraph 3b, Member States which apply public interventions in price setting for the supply of electricity to households as part of the support programme [under the European Stability Mechanism], may continue to apply such public interventions subject to the terms stipulated in that support programme and the implementing documents.

• 4. 

  After[OP – insert the date – five AM 38

years from the entry into force of this 4. Between [OP – insert the date – []

Directive], Member States may still five years from the entry into force of apply public interventions in the pricethis Directive] and [OP – insert the setting for the supply of electricity for date – ten years from the entry into vulnerable household customers in so force of this Directive], Member States far as it is strictly necessary for reasons may still apply public interventions in of extreme urgency. Such interventions the price-setting for the supply of shall comply with the conditions set electricity for vulnerable household out in paragraph 3. customers. Such interventions shall

comply with all the following conditions: (a) they shall not go beyond what is necessary to achieve the general economic interest which they pursue; (b) they shall be limited in time; (c) they shall be proportionate as regards their beneficiaries; (d) they shall be limited to energy poor and vulnerable customers; (e) they shall not impede market entry by new participants; (f) they shall not negatively impact the wholesale electricity market;

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(g) they shall not result in additional costs for market participants in a discriminatory way; and (h) all beneficiaries of such public intervention shall have the possibility to choose competitive market offers and shall be directly informed of the availability of offers and savings on the competitive market, in particular dynamic electricity price contracts, at least every quarter and they shall be provided with assistance to switch to a market based offer.

Member States shall notify the

measures taken in accordance with the 4. [] Member States shall notify the first subparagraph to the Commission measures taken in accordance with within one month after adoption and paragraph 3 [] to the Commission may apply them immediately. The within one month after adoption and notification shall be accompanied by may apply them immediately. The an explanation why other instruments notification shall be accompanied by could not sufficiently address the an explanation why [] other situation and how the beneficiaries and instruments could not sufficiently the duration of the measure have been address the situation and how the determined. The notification shall be beneficiaries and the duration of the considered as complete if, within two measure have been determined. []

months from its receipt, or from the receipt of any additional information requested, the Commission does not request any further information.

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The Commission may take a decision

asking the national authorities to []

amend or withdraw the measures within two months from receipt of a complete notification where it considers that the requirements set out in the first subparagraph are not fulfilled. The decision-making period can be extended with the consent of both the Commission and the Member

State concerned.

The public intervention applied on the

basis of this paragraph shall be deemed []

valid as long as the Commission has not taken a decision asking the national authorities to amend or withdraw the measure.

Article 6 Third-party access 1. Member States shall ensure the 1. Member States shall ensure the implementation of a system of third implementation of a system of third party access to the transmission and party access to the transmission and distribution systems based on distribution systems based on published tariffs, applicable to all published tariffs, applicable to all customers and applied objectively and customers and applied objectively and without discrimination between system without discrimination between system users. Member States shall ensure that users. Member States shall ensure that those tariffs, or the methodologies those tariffs, or the methodologies underlying their calculation, are underlying their calculation, are approved prior to their entry into force approved prior to their entry into force in accordance with Article 59 and that in accordance with Article 59 and that those tariffs, and the methodologies — those tariffs, and the methodologies — where only methodologies are where only methodologies are approved — are published prior to approved — are published prior to their entry into force. their entry into force.

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• 2. 

  The transmission or distribution 2. The transmission or distribution system operator may refuse access system operator may refuse access where it lacks the necessary capacity. where it lacks the necessary capacity. Duly substantiated reasons shall be Duly substantiated reasons shall be given for such refusal, in particular given for such refusal, in particular having regard to Article 9, and based having regard to Article 9, and based on objective and technically and on objective and technically and economically justified criteria. economically justified criteria. Member States or, where Member Member States or, where Member States have so provided, the regulatory States have so provided, the regulatory authorities shall ensure that those authorities shall ensure that those criteria are consistently applied and criteria are consistently applied and that the system user who has been that the system user who has been refused access can make use of a refused access can make use of a dispute settlement procedure. The dispute settlement procedure. The regulatory authorities shall also ensure, regulatory authorities shall also ensure, where appropriate and when refusal of where appropriate and when refusal of access takes place, that the access takes place, that the transmission or distribution system transmission or distribution system operator provides relevant information operator provides relevant information on measures that would be necessary on measures that would be necessary to reinforce the network. Such to reinforce the network. Such information shall be provided in all information shall be provided in all cases when access for recharging cases when access for recharging points was denied. The party points was denied. The party requesting such information may be requesting such information may be charged a reasonable fee reflecting the charged a reasonable fee reflecting the cost of providing such information. cost of providing such information.

  2a. The provisions of this Article apply also to energy communities that manage distribution networks.

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Article 7 Direct lines 1. Member States shall take the 1. Member States shall take the measures necessary to enable: measures necessary to enable: (a) all electricity producers and AM 39 (a) all electricity producers and electricity supply undertakings (a) all electricity producers and electricity supply undertakings established within their territory to electricity supply undertakings established within their territory to supply their own premises, subsidiaries established within their territory to supply their own premises, subsidiaries and customers through a direct line; supply their own premises, subsidiaries and customers through a direct line;

and customers through a direct line without being subject to disproportionate administrative procedures or costs related for instance to the need for a supply licence;

(b) all customers within their territory AM 40 (b) all customers within their to be supplied through a direct line by (b) all customers within their territory to be supplied through a direct a producer and supply undertakings. territory individually or jointly, to be line by a producer and supply

supplied through a direct line by a undertakings. producer and supply undertakings.

• 2. 

  Member States shall lay down 2. Member States shall lay down the criteria for the grant of the criteria for the grant of authorisations for the construction of authorisations for the construction of direct lines in their territory. Those direct lines in their territory. Those criteria shall be objective and noncriteria shall be objective and nondiscriminatory. discriminatory. 3. The possibility of supplying AM 41 3. The possibility of supplying electricity through a direct line as 3. The possibility of supplying electricity through a direct line as referred to in paragraph 1 shall not electricity through a direct line as referred to in paragraph 1 shall not affect the possibility of contracting referred to in paragraph 1 shall not affect the possibility of contracting electricity in accordance with affect the possibility of contracting electricity in accordance with Article Article 6. electricity in accordance with Article 6 6.

  and shall not affect the right of the customer to sign a second supply contract for the residual electricity demand.

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• 4. 

  Member States may issue an 4. Member States may issue an authorisation to construct a direct line authorisation to construct a direct line subject either to the refusal of system subject either to the refusal of system access on the basis, as appropriate, of access on the basis, as appropriate, of Article 6 or to the opening of a dispute Article 6 or to the opening of a dispute settlement procedure under Article 60. settlement procedure under Article 60. 5. Member States may refuse to 5. Member States may refuse to authorise a direct line if the granting of authorise a direct line if the granting of such an authorisation would obstruct such an authorisation would obstruct application of the provisions on public application of the provisions on public service obligations pursuant to service obligations pursuant to Article Article 9 . Duly substantiated reasons 9. Duly substantiated reasons shall be shall be given for such refusal. given for such refusal.

  Article 8 Authorisation procedure for new capacity 1. For the construction of new 1. For the construction of new generating capacity, Member States generating capacity, Member States shall adopt an authorisation procedure, shall adopt an authorisation procedure, which shall be conducted in which shall be conducted in accordance with objective, transparent accordance with objective, transparent and non-discriminatory criteria. and non-discriminatory criteria. 2. Member States shall lay down 2. Member States shall lay down the criteria for the grant of the criteria for the grant of authorisations for the construction of authorisations for the construction of generating capacity in their territory. In generating capacity in their territory. In determining appropriate criteria, determining appropriate criteria, Member States shall consider: Member States shall consider: (a) the safety and security of the (a) the safety and security of the electricity system, installations and electricity system, installations and associated equipment; associated equipment; (b) the protection of public health (b) the protection of public health and safety; and safety; (c) the protection of the (c) the protection of the environment; environment;

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(d) land use and siting; (d) land use and siting;

(e) the use of public ground; (e) the use of public ground;

(f) energy efficiency; (f) energy efficiency;

(g) the nature of the primary (g) the nature of the primary sources; sources; (h) the characteristics particular (h) the characteristics particular to to the applicant, such as technical, the applicant, such as technical, economic and financial capabilities; economic and financial capabilities; (i) compliance with measures (i) compliance with measures adopted pursuant to Article 9; adopted pursuant to Article 9; (j) the contribution of the generating (j) the contribution of the capacity to meeting the overall Union generating capacity to meeting the target of at least a 20 % share of overall Union target of at least a 20 % energy from renewable sources in the share of energy from renewable Union ’s gross final consumption of sources in the Union’s gross final energy in 2020 referred to in consumption of energy in 2020 Article 3(1) of Directive 2009/28/EC i referred to in Article 3(1) of Directive of the European Parliament and of the 2009/28/EC of the European Council 30 ; and Parliament and of the Council 31 ; and (k) the contribution of generating (k) the contribution of generating capacity to reducing emissions. capacity to reducing emissions.

AM 42 (ka) (new) the assessment of alternatives, such as demandresponse solutions and energy storage, to the construction of new generating capacity.

30 Directive 2009/28/EC i of the European Parliament and the Council of 23 April 2009 on the promotion of the use of energy sources (OJ L 140, 5.6.2009,

• p. 

  16). 31 Directive 2009/28/EC i of the European Parliament and the Council of 23 April 2009 on the promotion of the use of energy sources (OJ L 140, 5.6.2009,

• p. 

  16).

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• 3. 

  Member States shall ensure that AM 43 3. Member States shall ensure that specific authorisation procedures exist Member States shall ensure that specific authorisation procedures exist for small decentralised and/or specific, simplified and streamlined for small decentralised and/or distributed generation, which take into authorisation procedures exist for distributed generation, which take into account their limited size and potential small decentralised and/or distributed account their limited size and potential impact. generation, which take into account impact.

  their limited size and potential impact.

Member States may set guidelines for Member States may set guidelines for that specific authorisation procedure. that specific authorisation procedure. National regulatory authorities or other National regulatory authorities or other competent national authorities competent national authorities including planning authorities shall including planning authorities shall review those guidelines and may review those guidelines and may recommend amendments thereto. recommend amendments thereto. Where Member States have established Where Member States have established particular land use permit procedures particular land use permit procedures applying to major new infrastructure applying to major new infrastructure projects in generation capacity, projects in generation capacity, Member States shall, where Member States shall, where appropriate, include the construction of appropriate, include the construction of new generation capacity within the new generation capacity within the scope of those procedures and shall scope of those procedures and shall implement them in a nonimplement them in a nondiscriminatory manner and within an discriminatory manner and within an appropriate time-frame. appropriate time-frame. 4. The authorisation procedures 4. The authorisation procedures and criteria shall be made public. and criteria shall be made public. Applicants shall be informed of the Applicants shall be informed of the reasons for any refusal to grant an reasons for any refusal to grant an authorisation. Those reasons shall be authorisation. Those reasons shall be objective, non-discriminatory, wellobjective, non-discriminatory, wellfounded and duly substantiated. founded and duly substantiated. Appeal procedures shall be made Appeal procedures shall be made available to the applicant. available to the applicant.

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Article 9 Public service obligations 1. Member States shall ensure, on 1. Member States shall ensure, on the basis of their institutional the basis of their institutional organisation and with due regard to the organisation and with due regard to the principle of subsidiarity, that, without principle of subsidiarity, that, without prejudice to paragraph 2, electricity prejudice to paragraph 2, electricity undertakings are operated in undertakings are operated in accordance with the principles of this accordance with the principles of this Directive with a view to achieving a Directive with a view to achieving a competitive, secure and competitive, secure and environmentally sustainable market in environmentally sustainable market in electricity, and shall not discriminate electricity, and shall not discriminate between those undertakings as regards between those undertakings as regards either rights or obligations. either rights or obligations. 2. Having full regard to the AM 44 2. Having full regard to the relevant provisions of the Treaty, in 2. Having full regard to the relevant provisions of the Treaty, in particular Article 106 thereof, relevant provisions of the Treaty, in particular Article 106 thereof, Member States may impose on particular Article 106 thereof, Member Member States may impose on undertakings operating in the States may impose on undertakings undertakings operating in the electricity sector, in the general operating in the electricity sector, in electricity sector, in the general economic interest, public service the general economic interest, public economic interest, public service obligations which may relate to service obligations which may relate to obligations which may relate to security, including security of supply, security, including security of supply, security, including security of supply, regularity, quality and price of supplies regularity, quality and price of supplies regularity, quality and price of supplies and environmental protection, and environmental protection, and environmental protection, including energy efficiency, energy including energy efficiency, energy including energy efficiency, energy from renewable sources and climate from renewable sources and climate from renewable sources and climate protection. Such obligations shall be protection. Such obligations shall be protection. Such obligations shall be clearly defined, transparent, nonclearly defined, transparent, nonclearly defined, transparent, nondiscriminatory, verifiable and shall discriminatory, verifiable and shall discriminatory, verifiable and shall guarantee equality of access for guarantee equality of access for guarantee equality of access for electricity undertakings of the Union to electricity undertakings of the Union to electricity undertakings of the Union to national consumers. Public service national consumers. In relation to national consumers. Public service obligations which concern the price security of supply, energy obligations which concern the price

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setting for the supply of electricity efficiency/demand-side management setting for the supply of electricity shall comply with the requirements set and for the fulfilment of shall comply with the requirements set out in Article 5. environmental goals and aims for out in Article 5.

energy from renewable sources, as referred to in this paragraph, Member States may introduce the implementation of long-term planning, taking into account the possibility of third parties seeking access to the system. Public service obligations which concern the price setting for the supply of electricity shall comply with the requirements set out in Article 5.

• 3. 

  Where financial compensation, 3. Where financial compensation, other forms of compensation and other forms of compensation and exclusive rights which a Member State exclusive rights which a Member State grants for the fulfilment of the grants for the fulfilment of the obligations set out in paragraph 2 or obligations set out in paragraph 2 or for the provision of universal service for the provision of universal service as set out in Article 27 are provided, as set out in Article 27 are provided, this shall be done in a nonthis shall be done in a nondiscriminatory and transparent way. discriminatory and transparent way.

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• 4. 

  Member States shall, upon 4. Member States shall, upon implementation of this Directive, implementation of this Directive, inform the Commission of all measures inform the Commission of all measures adopted to fulfil universal service and adopted to fulfil universal service and public service obligations, including public service obligations, including consumer protection and consumer protection and environmental protection, and their environmental protection, and their possible effect on national and possible effect on national and international competition, whether or international competition, whether or not such measures require a derogation not such measures require a derogation from this Directive. They shall inform from this Directive. They shall inform the Commission subsequently every the Commission subsequently every two years of any changes to such two years of any changes to such measures, whether or not they require a measures, whether or not they require a derogation from this Directive. derogation from this Directive. 5. Member States may decide not 5. Member States may decide not to apply the provisions of Articles 6, 7 to apply the provisions of Articles 6, 7 and 8 insofar as their application and 8 insofar as their application would obstruct the performance, in law would obstruct the performance, in law or in fact, of the obligations imposed or in fact, of the obligations imposed on electricity undertakings in the on electricity undertakings in the general economic interest and insofar general economic interest and insofar as the development of trade would not as the development of trade would not be affected to such an extent as would be affected to such an extent as would be contrary to the interests of the be contrary to the interests of the Union . The interests of the Union Union. The interests of the Union include, inter alia, competition with include, inter alia, competition with regard to customers in accordance with regard to customers in accordance with this Directive and Article 106 of the this Directive and Article 106 of the Treaty. Treaty.

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CHAPTER III CONSUMER EMPOWERMENT AND PROTECTION

Article 10 Basic contractual rights 1. Member States shall ensure that 1. Member States shall ensure that all customers are entitled to have their all customers are entitled to have their electricity provided by a supplier, electricity provided by a supplier, subject to the supplier’s agreement, subject to the supplier’s agreement, regardless of the Member State in regardless of the Member State in which the supplier is registered, as which the supplier is registered, as long as the supplier follows the long as the supplier follows the applicable trading rules. In this regard, applicable trading and balancing Member States shall take all measures rules. In this regard, Member States necessary to ensure that administrative shall take all measures necessary to procedures do not discriminate against ensure that administrative procedures supply undertakings already registered do not discriminate against supply in another Member State. undertakings already registered in

another Member State. 2. Without prejudice 2. Without prejudice to Union rules to Union rules on consumer on consumer protection, in particular protection, in particular Directive Directive 2011/83 i/EU of the European 2011/83/EU of the European Parliament and of the Council 34 and Parliament and of the Council 32 and Council Directive 93/13/EEC i (35), Council Directive 93/13/EEC i (33), Member States shall ensure that []: Member States shall ensure that customers:

32 OJ L 304, 22.11.2011, p. 64–88

33 OJ L 95, 21.4.1993, p. 29–34

34 OJ L 304, 22.11.2011, p. 64–88

35 OJ L 95, 21.4.1993, p. 29–34

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(a) have a right to a contract with (a) customers have a right to a their electricity service provider that contract with their [] supplier that specifies: specifies:

– the identity and address of the – the identity and address of the supplier, supplier,

– the services provided, the – the services provided, the service quality levels offered, as well service quality levels offered, as well as the time for the initial connection, as the time for the initial connection, – the types of maintenance service – the types of maintenance service offered, offered,

– the means by which up-to-date AM 45 – the means by which up-to-date information on all applicable tariffs - the means by which up-to-date information on all applicable tariffs and maintenance charges may be information on all applicable tariffs and maintenance charges may be obtained, and maintenance charges and obtained,

additional products and /or services (bundled offers) may be obtained,

– the duration of the contract, the AM 46 – the duration of the contract, the conditions for renewal and termination - the duration of the contract, the conditions for renewal and termination of services and of the contract, conditions for renewal and termination of services and of the contract ,

of services including additional products and/or services (bundled services) and of the contract and whether withdrawal from the contract without charge is permitted,

– any compensation and the – any compensation and the refund arrangements which apply if refund arrangements which apply if contracted service quality levels are contracted service quality levels are not met, including inaccurate and not met, including inaccurate and delayed billing, delayed billing,

– the method of initiating – the method of initiating procedures for settlement of disputes in procedures for settlement of disputes in accordance with Article 26 , accordance with Article 26,

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– information relating to consumer – information relating to consumer rights, including on the complaint rights, including on the complaint handling and all of the information handling and all of the information referred to in this point, clearly referred to in this point, clearly communicated through billing or the communicated through billing or the electricity undertaking’s web site. electricity undertaking’s web site. Conditions shall be fair and well Conditions shall be fair and wellknown in advance. In any case, this known in advance. In any case, this information should be provided prior information should be provided prior to the conclusion or confirmation of to the conclusion or confirmation of the contract. Where contracts are the contract. Where contracts are concluded through intermediaries, the concluded through intermediaries, the information relating to the matters set information relating to the matters set out in this point shall also be provided out in this point shall also be provided prior to the conclusion of the contract; prior to the conclusion of the contract; (b) are given adequate notice of any AM 47 (b) customers are given adequate intention to modify contractual (b) are given adequate notice of any notice of any intention to modify conditions and are informed about their intention to modify contractual contractual conditions and are right to dissolve the contract when the conditions and are informed about their informed about their right to dissolve notice is given. Suppliers shall notify right to dissolve the contract when the the contract when the notice is given. their customers directly of any notice is given. Suppliers shall notify Suppliers shall notify their customers adjustment in the supply price as well their customers directly of any directly of any adjustment in the as of the reasons and preconditions for adjustment in the supply price as well supply price as well as of the reasons the adjustment and its scope, at an as of the reasons and preconditions for and preconditions for the adjustment appropriate time no later than one the adjustment and its scope, as soon and its scope, at an appropriate time no normal billing period before the as they have the information on the later than [] two weeks, and as far as adjustment comes into effect in a adjustment, and no later than one household consumers are transparent and comprehensible month before the adjustment comes considered, one month before the manner. Member States shall ensure into effect in a transparent and adjustment comes into effect in a that customers are free to withdraw comprehensible manner. Member transparent and comprehensible from contracts if they do not accept the States shall ensure that customers are manner. Member States shall ensure new contractual conditions or free to withdraw from contracts if they that customers are free to withdraw adjustments in the supply price notified do not accept the new contractual from contracts if they do not accept the to them by their electricity supplier ; conditions or adjustments in the supply new contractual conditions or

price notified to them by their adjustments in the supply price notified

electricity supplier; to them by their electricity supplier;

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(c) receive transparent (c) customers receive transparent information on applicable prices and information on applicable prices and tariffs and on standard terms and tariffs and on standard terms and conditions, in respect of access to and conditions, in respect of access to and use of electricity services; use of electricity services; (d) are offered a wide choice of AM 48 (d) customers are offered a wide payment methods, which do not (d) are offered a wide choice of choice of payment methods, which do unduly discriminate between payment methods, which do not not unduly discriminate between customers. Any difference in charges unduly discriminate between customers. Any difference in charges related to payment methods shall customers. Any difference in charges related to payment methods shall be reflect the relevant costs incurred by related to payment methods shall objective, non-discriminatory and the supplier . reflect the relevant costs incurred by proportionate and shall not exceed

the supplier, in line with Article 62 of the direct costs borne by the payee

Directive (EU) 2015/2366 which for the use of the specific payment

forbids surcharges for any payment method [].

instrument;

(e) are not placed at an excessive AM 49 (e) pursuant to subparagraph

disadvantage in comparison to the (e) are not placed at a (d), household customers, who have

average market price by the disproportionate disadvantage in access to prepayment systems, are

prepayment systems; comparison to the average market price not placed at a [] disadvantage [] by

by the prepayment systems; the prepayment systems;

(f) are offered fair and (f) customers are offered fair and

transparent general terms and transparent general terms and

conditions. The general terms and conditions . The general terms and

conditions shall be given in clear and conditions shall be given in clear and

comprehensible language and shall not comprehensible language and shall not

include non-contractual barriers to the include non-contractual barriers to the

exercise of customers’ rights, for exercise of customers’ rights, for

example excessive contractual example excessive contractual

documentation. Customers shall be documentation. Customers shall be

protected against unfair or misleading protected against unfair or misleading

selling methods; selling methods;

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(g) have the right to a good standard of (g) customers have the right to a service and complaint handling by good standard of service and their electricity service provider. complaint handling by their Electricity service providers shall suppliers []. [] Suppliers shall handle complaints in a simple, fair and handle complaints in a simple, fair

prompt manner; and prompt manner;

(h) when having access to universal (h) customers when having access service under the provisions adopted to universal service under the by Member States pursuant to Article provisions adopted by Member States 27 , are informed about their rights pursuant to Article 27 , are informed regarding universal service; about their rights regarding universal

service; (i) are given adequate (i) household costumers are given information on alternatives to adequate information on alternatives to disconnection sufficiently in advance disconnection sufficiently in advance before the planned disconnection. before the planned disconnection. These alternatives may refer to sources These alternatives may refer to sources of support to avoid disconnection, of support to avoid disconnection, alternative payment plans, debt prepayment systems, energy audits, management advice or disconnection energy consultancy services, moratorium and should not constitute alternative payment plans, debt an extra cost to customers; management advice or disconnection []

moratoria. The information on the available alternatives [] should not constitute an extra cost to the customers facing disconnection;

(j) receive a final closure account AM 50 (j) customers receive a final following any change of electricity (j) receive a final closure account closure account following any change supplier no later than six weeks after following any change of electricity of [] supplier no later than six weeks the change of supplier has taken place. supplier no later than two weeks after after the change of supplier has taken

the change of supplier has taken place. place.

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AM 51 (ja) (new) are provided with a summary of the key contractual conditions (such as the main features of the service, detailed information on prices, conditions for switching and price increase) in concise and simple language on the first page of the contract or together with the contract. Article 11 Entitlement to a dynamic electricity price contract

• 1. 

  Member States shall ensure that 1. Member States shall ensure every final customer is entitled, on that the national regulatory request, to a dynamic electricity price framework enables electricity contract by his supplier. suppliers to offer a dynamic

  electricity price contract. Member States shall ensure that [] final customers who have a smart meter installed can [] request to conclude a dynamic electricity price contract from at least one [] supplier.

• 2. 

  Member States shall ensure that AM 52 2. Member States shall ensure that final customers are fully informed by 2. Member States shall ensure that final customers are [] well informed by the suppliers of the opportunities and final customers are fully informed by the suppliers of the opportunities, costs risks of such dynamic electricity price the suppliers of the opportunities and and risks of such dynamic electricity contract. risks of such dynamic electricity price price contract and that suppliers are

  contract including the need to have an required to provide information to adequate electricity meter installed. the final customers accordingly. Regulatory authorities shall monitor the market developments and assess the risks that the new products and services may entail and modify safeguards in case of abusive practices.

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AM 53 2a. (new) Every final customer shall always be required to give consent before being switched to a dynamic price contract. AM 54 2b. (new) Member States shall aim at reducing the share of fixed components in final customers’ electricity bills.

• 3. 

  Member States, through their 3. Where dynamic electricity

National Regulatory Authorities, shall price contracts account for less than monitor and report annually, for at 80% of the electricity consumed by least a ten-year period after such households, Member States [] or their contracts become available, on the National Regulatory Authorities, shall main developments of such contracts monitor and publish an annual report including market offers, the impact on [], for at least a ten-year period after consumers' bills and specifically the such contracts become available, on level of price volatility, and on the main developments of such consumers' sensitivity to the level of contracts including market offers[]. financial risk.

AM 55 3a. (new) Member States shall ensure that adequate safeguards on the exposure of price changes for final customers are in place to avoid bill shocks or high levels of financial liability.

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Article 12 Right to switch [] and rules on switching-related fees

• 1. 

  Member States shall ensure that 1. Member States shall ensure that a customer wishing to change supplier, a customer wishing to change suppliers while respecting contractual or market participant engaged in conditions, is entitled to such change aggregation, while respecting within three weeks. contractual conditions, is entitled to

  such a change within a maximum of three weeks. By no later than 2025, the technical process of switching supplier shall take no longer than 24 hours and shall be possible on any working day, unless a Member State concludes there is a negative cost– benefit analysis.

  AM 56 (new) By 1 January 2022, the technical process of switching supplier shall take no longer than 24 hours and shall be possible on any working day.

• 2. 

  Member States shall ensure AM 57 2. Member States shall ensure that that customers are not charged any 2. Member States shall ensure that at least household customers, switching-related fees. final customers are not charged any microenterprises and small

  switching-related fees. enterprises are not charged any switching-related fees.

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• 3. 

  By way of derogation from AM 58 3. By way of derogation from paragraph 2, Member States may 3. By way of derogation from paragraph 2, Member States may choose to permit suppliers to charge paragraph 2, Member States may choose to permit suppliers or market contract termination fees to customers choose to permit suppliers to charge participants engaged in aggregation willingly terminating fixed term supply contract termination fees to final to charge contract termination fees to contracts before their maturity. Such customers willingly terminating fixed customers, willingly terminating fixed fees may only be charged if customers term, fixed price supply contracts term, fixed price supply [] contracts receive a demonstrable advantage from before their maturity provided that the before their maturity, as long as such these contracts. In addition, such fees customer has willingly entered into fees are part of a contract that the shall not exceed the direct economic such a contract. Such fees may only costumer has willingly entered into loss to the supplier of the customer be charged if final customers receive a and such fees are clearly terminating the contract, including the demonstrable advantage from these communicated to the customer cost of any bundled investments or contracts. In addition, such fees shall before the contract is entered into. services already provided to the be proportionate to the advantage Such fees [] shall [] be proportionate customer as part of the contract. provided to the customer and shall not and not exceed the direct economic

  exceed the direct economic loss to the loss to the supplier or market supplier of the final customer participant engaged in aggregation terminating the contract, including the of the customer terminating the cost of any bundled investments or contract, including the costs of any services already provided to the final bundled investments or services customer as part of the contract. The already provided to the customer as burden of proof of the direct part of the contract. economic loss shall be on the supplier and shall be monitored by the national regulatory authority.

• 4. 

  Member States shall ensure that 4. Member States shall ensure that the right to switch suppliers is granted the right to switch suppliers or market to customers in a non-discriminatory participant engaged in aggregation manner as regards cost, effort or time. is granted to customers in a nondiscriminatory

  manner as regards cost, effort or time.

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AM 59 4a. (new) Household customers shall be entitled to participate in collective switching schemes. Member States shall remove all regulatory or administrative barriers for collective switching while providing a framework that ensures utmost protection for consumers to avoid any abusive practices. Article 13 [] Aggregation contract -1. Member States shall ensure that all customers are free to purchase and sell electricity services, other than electricity supply, including aggregation, independently from their supply contract and from an electricity undertaking of their choice.

• 1. 

  Member States shall ensure that, AM 60 1. Member States shall ensure that, where a final customer wishes to 1. Member States shall ensure that where a final customer wishes to conclude a contract with an aggregator, final customers are entitled to conclude an aggregation contract [], such engagement shall not require the conclude a contract with an aggregator this shall not require the consent of the consent of the final customer's and that such engagement shall not final customer's [] electricity supplier. require the consent of the final undertaking Member States may

  customer's supplier. allow suppliers to require such consent only in cases where the customer's supplier does neither receive a regulated compensation payment in line with Article

  17(3)(db) nor a compensation for positive imbalances and the need for the supplier’s consent is clearly specified in the contract between the

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customer and his supplier. Such contractual terms and conditions should be subject to monitoring and approval by the regulatory authorities.

Member States shall ensure that aggregators fully inform customers of the terms and conditions of the contracts offered to them. Member States shall ensure that suppliers do not discriminate between customers on the basis of whether they have a contract with an aggregator.

• 2. 

  Member States shall ensure that AM 61 2. []

a final customer wishing to terminate 2. Member States shall ensure that the contract with an aggregator, while a final customer wishing to terminate respecting contractual conditions, is the contract with an aggregator may do entitled to such termination within so in accordance with Article 12. three weeks.

• 3. 

  Member States shall ensure that 3. [] final customers terminating a fixed term contract with an aggregator before its maturity are not charged any termination fee that exceeds the direct economic loss to the aggregator, including the cost of any bundled investments or services already provided to the final customer as part of the contract.

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AM 62 (new) The burden of proof of the direct economic loss shall be on the aggregator and shall be monitored by the national regulatory authority.

• 4. 

  Member States shall ensure that AM 63 4. Member States shall ensure that final customers are entitled to receive 4. Member States shall ensure that final customers are entitled to receive all relevant demand response data or final customers are entitled to receive all relevant demand response data or data on supplied and sold electricity at all relevant demand response data or data on supplied and sold electricity least once per year. data on supplied and sold electricity free of charge at least once every

  and settlement data upon request and billing period [] if requested by the without being charged any additional customer. fees and at least once per month.

• 5. 

  Member States shall ensure that 5. Member States shall ensure that the rights referred to in paragraphs 1, the rights referred to in paragraphs 1[] 2, 3 and 4 are granted to final and 4 are granted to final customers in customers in a non-discriminatory a non-discriminatory manner as manner as regards cost, effort or time. regards cost, effort or time.

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Article 14 Comparison tools 1. Member States shall ensure that AM 64 1. Member States shall ensure that customers have access, free of charge, 1. Member States shall ensure that at least household customers, and to at least one tool comparing the customers have access, free of charge, microenterprises with an expected offers of suppliers that meets the to at least one tool comparing the yearly consumption of below 100,000 certification criteria set out in Annex I. offers from both individual and kWh have access, free of charge, to at The comparison tools may be operated bundled contracts, including dynamic least one tool comparing the offers of by any entity, including private price contracts, offers from electricity suppliers that meets [] at least the companies and public authorities or suppliers, electricity service providers following criteria: bodies. Customers should be informed and independent aggregators that The tools shall: of the availability of such tools. meets at least the certification criteria

set out in Annex I. The comparison tools may be operated by any entity, including private companies and public authorities or bodies. At least one tool per Member States shall cover the whole of the market. Customers shall be informed of the availability of such tools in or together with their bills. (a) be operationally independent and ensure that electricity undertakings are given equal treatment in search results; (b) clearly disclose their owners and the natural or legal person operating the tool; (c) set out clear, objective criteria on which the comparison will be based and disclose them; (d) use plain and unambiguous language; (e) provide accurate and up-to-date information and state the time of the last update;

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(f) where multiple tools cover the market, include, as complete as practicable, a range of electricity offers covering a significant part of the market and, where the information presented is not a complete overview of the market, a clear statement to that effect, before displaying results. In such cases the Member State shall ensure that at least one tool provides an overview of the whole of the market; and (g) provide an effective procedure to report incorrect information on published offers. 1a The tools referred to in paragraph 1 may be operated by any entity, including private companies and public authorities or bodies. 1b Household customers and microenterprises with an expected yearly consumption of below 100,000 kWh shall be informed of the availability of the tools referred to in paragraph 1.

• 2. 

  Member States shall appoint an 2. Member States shall appoint a [] independent competent authority competent authority to be responsible responsible for certifying comparison for [] verifying comparison tools and tools and ensuring that certified ensuring that [] verified comparison comparison tools continue to meet the tools continue to meet the criteria set criteria set out in Annex I. out in paragraph 1 []. This authority

  shall be independent from any market participants and comparison tool operators.

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• 3. 

  Member States may require the AM 65 3. [] comparison tools referred to in 3. Member States shall require the paragraph 1 to include comparative comparison tools referred to in determinants relating to the nature of paragraph 1 to include comparative the services offered by the suppliers. determinants relating to the nature of

  the services offered by the suppliers.

• 4. 

  Any tool comparing the offers of AM 66 4. Any tool comparing the offers of suppliers shall be eligible to apply for 4. Any tool comparing the offers of [] market participants shall be certification in accordance with this electricity suppliers, electricity service eligible to apply for [] verification in Article on a voluntary and nonproviders and aggregators, including accordance with this Article on a discriminatory basis. independent aggregators, shall apply voluntary and non-discriminatory

  for certification in accordance with this basis.

  Article on a non-discriminatory basis.

  4a. By way of derogation from paragraphs 2 and 4, Member States may choose not to provide for verification of comparison tools should a public authority or body provide a comparison tool fulfilling the obligation set out in paragraph 1.

  Article 15 Active customers 1. Member States shall ensure that 1. Member States shall ensure that final customers: final customers: (a) are entitled to generate, store, AM 67 (a) are entitled [] to act as active consume and sell self-generated (a) are entitled to generate, store, customers, without being subject to [] electricity in all organised markets consume and sell self-generated discriminatory technical and either individually or through electricity in all organised markets administrative requirements, aggregators without being subject to either individually or through procedures and charges []; disproportionately burdensome aggregators without being subject to procedures and charges that are not discriminatory or disproportionately cost reflective; burdensome procedures and charges

  that are not cost reflective;

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(b) are subject to cost reflective, (b) [] transparent and non-discriminatory network charges, accounting separately for the electricity fed into the grid and the electricity consumed from the grid, in line with Article 59(8).

1a. Member States shall ensure that active consumers: (a) are entitled to operate either directly or through aggregation; (b) are entitled to sell selfgenerated electricity including through power purchase agreements; (c) are entitled to participate in demand response and energy efficiency schemes; (d) are entitled to delegate the management of the installations required for their activities to a third party, including installation, operation, data handling and maintenance; (e) are subject to cost reflective, transparent and non-discriminatory network charges, accounting separately for the electricity fed into the grid and the electricity consumed from the grid, in line with Article 59(8) ensuring they contribute in an adequate and balanced way to the overall cost sharing of system of producing, distributing and consuming electricity in line with Article 16 of the [Electricity Regulation];

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(f) are financially responsible for the imbalances they cause in the electricity system. To this extent they shall be balance responsible parties or shall delegate their balance responsibility in accordance with Article 4 of the [Electricity Regulation]. 1b. Member States may have different governing provisions for individual and jointly acting final customers in their national legislation provided that all rights and obligations as stipulated in this article are applied to all active customers. 1c. Member States that have existing schemes not accounting separately for the electricity fed into the grid and the electricity consumed from the grid, shall grant no new rights under these schemes beyond the end of the year 2025.

• 2. 

  The energy installation required AM 68 2. [] for the activities of the active customer 2. The energy installation required may be managed by a third party for for the activities of the active customer installation, operation, including may be managed by a third party for metering and maintenance. installation, operation, including

  metering and maintenance provided that the economic risk connected to the operation of the installation remains with the active costumer.

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Member States shall ensure that active customers owning a storage facility: (a) have the right to a grid connection within a reasonable time following the request; (b) are not subject to additional taxes, surcharges, and fees for the electricity stored in the storage facility; (c) are distinguished from generators and not subject to related licensing requirements and fees; (d) are allowed to provide several services simultaneously, if technically feasible. Article 16 [] Energy communities

• 1. 

  Member States shall ensure that 1. Member States shall [] provide local energy communities: an enabling regulatory framework

  for [] energy communities ensuring that:

(a) are entitled to own, establish, or AM 69 (a) [] lease community networks and to (a) are entitled to own, establish, or autonomously manage them; lease community networks and

autonomously manage them, as long as the concession system of the Member State is respected;

(b) can access all organised markets (b) [] either directly or through aggregators or suppliers in a non-discriminatory manner;

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AM 70 (ba) (new) shall be subject to balance responsibility in accordance with Article 4 of Regulation (EU) ... [recast of Regulation 714/2009 i as proposed by COM (2016)861 i/2];

(c) benefit from a non AM 71 (c) [] discriminatory treatment with regard to (c) benefit from a nontheir activities, rights and obligations discriminatory treatment with regard to as final customers, generators, their activities, rights and obligations distribution system operators or as final customers, generators, aggregators; distribution system operators,

suppliers or aggregators; AM 72 (ca) (new) adequately contribute to the costs of the electricity system to which they remain connected; AM 73 (cb) (new) operate on the market on a level playing field without distorting competition;

(d) are subject to fair, proportionate (d) [] and transparent procedures and cost reflective charges.

(a) participation in an energy community is open and voluntary; (b) shareholders or members are allowed to leave an energy community; in such cases Article 12 shall apply;

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(c) shareholders or members of an energy community shall not lose their rights and obligations as household customers or active customers; (d) energy communities that supply electricity, provide aggregation or other commercial electricity services are subject to the provisions relevant for such activities; (e) relevant distribution system operator shall, subject to fair compensation as assessed by the regulatory authority, cooperate with energy communities to facilitate electricity transfers within energy communities; (f) energy communities are subject to non-discriminatory fair, proportionate and transparent procedure, including registration and licensing, and transparent and non-discriminatory and cost reflective network charges ensuring they contribute in an adequate and balanced way to the overall cost sharing of the system in line with Article 16 of the [Electricity Regulation].

• 2. 

  Member States shall provide an 2. Member States [] may provide enabling regulatory framework that [] in the enabling regulatory ensures that: framework that [] energy

  communities:

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AM 74 (-a) (new) conditions for creating, operating and dissolving local energy networks are well defined;

(a) participation in a local energy (a) [] community is voluntary;

AM 75 (aa) (new) conditions and standards are set up for local energy communities with networks in order to preserve efficient network planning. These conditions and standards shall also ensure that customers and members in the local energy community receive the same quality and standard of network services that are available to customers outside the local energy community; AM 76 (ab) (new) final customers are entitled to participate in a local energy community;

(b) shareholders or members of a (b) [] local energy community shall not lose their rights as household customers or active customers;

(c) shareholders or members are (c) [] allowed to leave a local energy community; in such cases Article 12 shall apply;

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(d) Article 8 (3) applies to (d) [] generating capacity installed by local energy communities as long as such capacity can be considered small decentralised or distributed generation;

(e) provisions of Chapter IV apply AM 77 (e) [] to local energy communities that (e) provisions of Chapter IV as well perform activities of a distribution as other rules and regulations system operator; applying to distribution system

operators apply to local energy communities that perform activities of a distribution system operator;

(f) where relevant, a local energy (f) [] community may conclude an agreement with a distribution system operator to which their network is connected on the operation of the local energy community's network;

(g) where relevant system users that AM 78 (g) [] are not shareholders or members of the (g) where relevant system users that local energy community connected to are not shareholders or members of the the distribution network operated by a local energy community connected to local energy community shall be the distribution network operated by a subject to fair and cost-reflective local energy community shall be network charges. If such system users subject to non-discriminatory, fair and and local energy communities cannot cost-reflective network charges. If such reach an agreement on network system users and local energy charges, both parties may request the communities cannot reach an regulatory authority to determine the agreement on network charges, both level of network charges in a relevant parties may request the regulatory decision; authority to determine the level of

network charges in a relevant decision;

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(h) where relevant local energy (h) [] communities are subject to appropriate network charges at the connection points between the community network and the distribution network outside the energy community. Such network charges shall account separately for the electricity fed into distribution network and the electricity consumed from the distribution network outside the local energy community in line with Article 59 (8).

(a) are open to cross-border participation; (b) are entitled to own, establish, purchase or lease distribution networks and to autonomously manage them subject to conditions set out in Article 16 (2b); (c) are subject to exemptions foreseen by Article 38(2); (d) are entitled to arrange within the community sharing of electricity that is produced by the production units owned by the community, subject to the provisions of this article and retaining community members’ rights and obligations as final consumers. 2a. Member States shall ensure that energy communities:

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(a) can access all electricity markets either directly or through aggregation in a non-discriminatory manner; (b) are treated in a nondiscriminatory manner with regard to their activities, and are subject to the same rights and obligations when acting as final customers, generators, suppliers, distribution system operators, or other market participants; (c) shall be financially responsible for the imbalances they cause in the electricity system. To this extend they shall be balance responsible parties or shall delegate their balance responsibility in accordance with Article 4 of the [Electricity Regulation]; (d) with regard to selfconsumption, energy communities shall be treated like active customers in accordance with Article 15(1)b; (e) are subject to Article 8 (3) in relation to generating capacity installed by energy communities as long as such capacity can be considered small decentralised or distributed generation.

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2b. Member States may decide, to grant energy communities with a right to manage distribution network in their area of operation and define the relevant procedures, without prejudice to the provisions of Chapter IV and other rules and regulations applying to distribution system operators. If such right is granted, Member States shall ensure that: (a) energy communities may conclude an agreement with a relevant distribution system operator or transmission system operator to which their network is connected on the operation of the energy community's network; (b) energy communities are subject to appropriate network charges at the connection points between the community network and the distribution network outside the energy community. Such network charges shall account separately for the electricity fed into distribution network and the electricity consumed from the distribution network outside the energy community in line with Article 59 (8);

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(c) energy communities do not discriminate or harm customers remaining connected to the distribution system.

AM 79 Article 16a (new)

Electricity sharing Local energy communities are entitled to share electricity from generation assets within the community between its members or shareholders based on market principles, including applying existing or future ICT technologies such as virtual net metering schemes and those based on distributed ledger technologies, as well as through power purchase agreements or peerto-peer trade arrangements for example.

Article 17 Demand response through aggregation 1. Member States shall ensure that AM 80 1. Member States shall allow and national regulatory authorities 1. Member States shall ensure that foster participation of demand encourage final customers, including the regulatory framework allows final response through aggregation. those offering demand response customers, including those offering Member States shall [] allow final through aggregators, to participate demand response through aggregators, customers, including those offering alongside generators in a nonto participate alongside generators in a demand response through [] discriminatory manner in all organised non-discriminatory manner in all aggregation, to participate alongside markets. organised markets and capacity electricity generators in a nonmechanisms.

discriminatory manner in all [] electricity markets.

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• 2. 

  Member States shall ensure that AM 81 2. Member States shall ensure that transmission system operators and 2. Member States shall ensure that transmission system operators and distribution system operators when transmission system operators and distribution system operators when procuring ancillary services, treat distribution system operators when procuring ancillary services, treat [] demand response providers, including procuring ancillary services, treat market participants engaging in independent aggregators, in a nondemand response providers, including demand response aggregation, in a discriminatory manner, on the basis of independent aggregators, in a nonnon-discriminatory manner, on the their technical capabilities. discriminatory manner alongside basis of their technical capabilities.

  generators, on the basis of their technical capabilities.

• 3. 

  Member States shall ensure that AM 82 3. Member States shall ensure that their regulatory framework encourages 3. Member States shall ensure that their relevant regulatory framework [] the participation of aggregators in the their regulatory framework encourages contains at least the following retail market and that it contains at the participation of aggregators in all elements: least the following elements: markets and that it contains at least the

  following elements:

(a) the right for each aggregator to (a) the right for each market enter the market without consent from participant engaged in aggregation, other market participants; including independent aggregators, to

enter [] electricity markets without consent from other []market participants;

(b) transparent rules clearly AM 83 (b) non-discriminatory and assigning roles and responsibilities to (b) non-discriminatory and transparent rules clearly assigning all market participants; transparent rules clearly assigning roles and responsibilities to all []

roles and responsibilities to all market electricity undertakings engaged in participants; aggregation or affected by the participation of demand response through aggregation;

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(c) transparent rules and procedures AM 84 (c) non-discriminatory and for data exchange between market (c) non-discriminatory and transparent rules and procedures for participants that ensure easy access to transparent rules and procedures for data exchange between market data on equal and non-discriminatory data exchange between market participants engaged in aggregation terms while fully protecting participants that ensure easy access to and other [] electricity undertakings commercial data; data on equal and non-discriminatory that ensure easy access to data on equal

terms while fully protecting and non-discriminatory terms while commercial data and customers´ fully protecting commercial data; personal data, including minimum information requirements for the aggregator, as well as minimum criteria for the protection of commercially sensitive data for all parties concerned;

(d) aggregators shall not be required AM 85 (d) [] to pay compensation to suppliers or deleted generators;

AM 86 (da) market participants engaged (da) (new) market participants in aggregation shall be financially engaged in aggregation shall be responsible for the imbalances they financially responsible for the cause in the electricity system. To imbalances they cause in the this extent they shall be balance electricity system as defined in responsible parties or shall delegate accordance with Article 4 of their balance responsibility in Regulation (EU) ... [recast of accordance with Art 4 of the Regulation 714/2009 i as proposed by electricity Regulation; COM (2016)861 i/2];

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AM 87 (db) Member States may require

(db) (new) non-discriminatory and undertakings, including independent

transparent rules and procedures to aggregators to pay compensation to

compensate market participants for other market participants or their

the energy they deliver during the balancing responsible party if they

demand response period in a directly induce imbalances to these

proportionate manner, under the market participants including

supervision of the national regulatory situations where a perimeter

authority, without creating a barrier correction is introduced without

for market entry of aggregators or a creating a barrier for market entry

barrier for flexibility. Compensation of aggregators or a barrier for

shall be strictly limited to cover the flexibility. In such cases the

resulting costs. The calculation compensation payment shall be

method for such compensation may strictly limited to cover the resulting

take account of the benefits induced costs. The calculation method for

by the independent aggregators to such compensation may take

other market participants and be account of the benefits induced by

subject to approval by the regulatory the independent aggregators to other

authority; market participants and be subject

to approval by the regulatory

authority;

AM 88 (dc) final customers who have a

(dc) (new) final customers who have a contract with independent

contract with independent aggregators shall not face undue

aggregators shall not face undue payments, penalties or other undue

payments, penalties or other undue contractual restriction from their

contractual restriction from their suppliers;

suppliers;

(e) a conflict resolution mechanism (e) a conflict resolution mechanism

between market participants. between market participants

engaged in aggregation and other

market participants, including

responsibility for imbalance.

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• 4. 

  In order to ensure that balancing AM 89 4. [] costs and benefits induced by deleted aggregators are fairly assigned to market participants, Member States may exceptionally allow compensation payments between aggregators and balance responsible parties. Such compensation payments must be limited to situations where one market participant induces imbalances to another market participant resulting in a financial cost.

Such exceptional compensation payments shall be subject to approval by the national regulatory authorities and monitored by the Agency.

• 5. 

  Member States shall ensure 5. [] Member States shall ensure access to and foster participation of that national regulatory authorities or, demand response, including through where their national legal system so independent aggregators in all requires, transmission system operators organised markets. Member States and distribution system operators in shall ensure that national regulatory close cooperation with [] market authorities or, where their national participants and final customers legal system so requires, transmission define technical [] characteristics for system operators and distribution participation of demand response in [] system operators in close cooperation all electricity markets on the basis of with demand service providers and the technical requirements of these final customers define technical markets and the capabilities of demand modalities for participation of demand response. Such specifications shall response in these markets on the basis include the participation of [] of the technical requirements of these aggregated loads. markets and the capabilities of demand response. Such specifications shall include the participation of aggregators.

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Article 18 [] Bills and billing information 1. Member States shall ensure that AM 90 1. Member States shall ensure that bills fulfil the minimum requirements 1. Member States shall ensure that bills [] and billing information are for billing and billing information as bills fulfil the minimum requirements accurate, easy to understand, clear, set out in Annex II. The information for billing and billing information as concise and presented in a manner that contained in bills shall be correct, set out in Annex II. The information facilitates comparison by consumers. clear, concise and presented in a contained in bills shall be correct, On request, final customers shall manner that facilitates comparison by clear, concise, user-friendly and receive a clear and understandable consumers. presented in a manner that facilitates explanation of how their bill was

comparison by consumers. The derived, especially where bills are

information indicated in Annex II not based on actual consumption.

that is not obligatory in the bills shall

be made available to the customers by

other means as chosen by the Member

States.

• 2. 

  Member States ensure that final 2. Member States shall ensure that

customers receive all their bills and final customers receive all their bills

billing information for electricity and billing information [] free of

consumption free of charge and that charge [].

bills are clear, accurate and easy to

understand.

• 3. 

  Billing shall take place on the AM 91 3. []

basis of actual consumption at least Billing shall take place on the basis of

once a year. Billing information shall actual consumption at least once a

be made available at least once every year. Billing information including

three months, upon request or where information on actual consumption

the final customers have opted to shall be made available at least once a

receive electronic billing or else twice month, upon request or where the final

a year. customers have opted to receive

electronic billing or else twice a year.

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This obligation may be fulfilled by a system of regular self-reading by the final customers whereby they communicate readings from their meter to the supplier. Only when the final customer has not been provided a meter reading for a given billing interval may billing be based on estimated consumption or a flat rate.

• 4. 

  Where final customers have AM 92 4. [] meters that allow remote reading by 4. Where final customers have the operator, accurate billing meters that allow remote reading by information based on actual the operator, accurate billing consumption shall be provided at least information based on actual once a month. consumption shall be provided at least

  once a month also through websites or other innovative means.

• 5. 

  Member States shall require 5. [] that, to the extent that information on the electricity billing and historical consumption is available, it is made available, at the request of the final customer, to a supplier or service provider designated by the consumer in accordance with point 3 of Annex II.

• 6. 

  Member States shall ensure that 6. Member States shall ensure that final customers are offered the option final customers are offered the option of electronic billing information and of electronic bills and billing bills and that they receive, on request, information, and flexible a clear and understandable explanation arrangements for actual payment []. of how their bill was derived, especially where bills are not based on actual consumption.

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• 7. 

  Member States may lay down AM 93 7. [] that, at the request of the final deleted customers, the information contained in these bills shall not be considered to constitute a request for payment. In such cases, Member States shall ensure that suppliers offer flexible arrangements for payments.

• 8. 

  Member States shall require that AM 94 8. [] information and estimates for 8. Member States shall require that electricity costs are provided to final information and estimates for customers on demand in a timely electricity costs are provided to final manner and in an easily understandable customers on demand in a timely format. manner and in an easily understandable

  format. If the contract includes a future change of product or price or a discount, this should be indicated on the bill together with the date when the change takes place. AM 95 8a. Member States shall ensure 8a. (new) Member States shall consult that bills and billing information consumer organisations when they fulfil the minimum requirements set consider changes to the format of out in Annex II. bills. AM 96 8b. (new) Where a final customer has been on the same tariff for more than 2 years, Member States shall require suppliers to notify the customer, in or alongside the energy bill, whether a more suitable or advantageous tariff is available, and facilitate their move to the new tariff.

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Article 19 Smart metering 1. In order to promote energy AM 97 1. In order to promote energy efficiency and empower customers, 1. In order to promote energy efficiency and empower [] final Member States or, where a Member efficiency and empower customers, customers, Member States or, where a State has so provided, the regulatory Member States or, where a Member Member State has so provided, the authority shall strongly recommend State has so provided, the regulatory regulatory authority shall strongly that electricity undertakings and authority shall strongly recommend recommend that electricity aggregators optimise the use of that electricity undertakings and undertakings and [] other market electricity, inter alia by providing aggregators optimise the use of participants optimise the use of energy management services, electricity, where cost-effective, inter electricity, inter alia by providing developing innovative pricing alia by providing energy management energy management services, formulas, or introducing interoperable services, developing innovative pricing developing innovative pricing smart metering systems or smart grids, formulas, and introducing formulas, or introducing interoperable where appropriate. interoperable smart metering systems smart metering systems or smart grids,

in particular with consumer energy where appropriate. management systems, smart grids, and where appropriate smart appliances and 'smart homes' in accordance with the applicable Union data protection legislation.

• 2. 

  Member States shall ensure the 2. Member States shall ensure the implementation of smart metering implementation of smart metering systems in their territories that shall systems in their territories that shall assist the active participation of assist the active participation of customers in the electricity market. customers in the electricity market. Such implementation may be subject to Such implementation may be subject to a cost-benefit assessment which shall a cost-benefit assessment which shall be undertaken according to the be undertaken according to the principles laid down in Annex III. principles laid down in Annex III.

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• 3. 

  Member States that proceed with AM 98 3. Member States that proceed with deployment shall adopt and publish the 3. Member States that proceed with deployment shall adopt and publish the minimum functional and technical smart metering deployment shall minimum functional and technical requirements for the smart metering adopt and publish the minimum requirements for the smart metering systems to be rolled out in their functional and technical requirements systems to be rolled out in their territories in line with the provisions for the smart metering systems to be territories in line with the provisions laid down in Article 20 and Annex III. rolled out in their territories in line laid down in Article 20 and Annex III. Member States shall ensure the with the provisions laid down in Member States shall ensure the interoperability of these smart Article 20 and Annex III. Member interoperability of these smart metering systems as well as their States shall ensure the interoperability metering systems as well as their [] connectivity with consumer energy of these smart metering systems, their ability to provide output for [] management platforms. To this user-centricity as well as their consumer energy management [] respect, Member States shall have due connectivity with consumer energy systems. To this respect, Member regard to the use of relevant available management platforms. To this States shall have due regard to the use standards including those enabling respect, Member States shall have due of relevant available standards interoperability, best practices and the regard to the use of relevant available including those enabling importance of the development of the standards including those enabling interoperability, best practices and the internal market in electricity. interoperability on the data model and importance of the development of the

  application layer level, best practices internal market in electricity. and the importance of the development of data exchange, future and innovative energy services, the deployment of smart grids and the internal market in electricity. For existing smart metering systems, the requirements must be met when the metering system is replaced by a new one, at the end of its economic lifetime or earlier.

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• 4. 

  Member States that proceed with AM 99 4. Member States that proceed with smart metering deployment shall 4. Member States that proceed with smart metering deployment shall ensure that final customers contribute smart metering deployment shall ensure that final customers contribute to the associated costs of the roll-out in ensure that final customers contribute to the associated costs of the roll-out in a transparent and non-discriminatory to the associated costs of the roll-out in a transparent and non-discriminatory manner. Member States shall regularly a transparent and non-discriminatory manner. Member States or, where a monitor this deployment in their manner while taking into account the Member State has so provided, the territories to track the evolution of long-term benefits for the whole value designated competent authorities, costs and benefits for the whole value chain. Member States shall regularly shall regularly monitor this chain, including the delivery of net monitor this deployment in their deployment in their territories to track benefits to consumers. territories to track the evolution of the delivery [] of [] benefits [] to

  costs and benefits for the whole value consumers. chain, including the delivery of net benefits such as savings to consumers and their overall satisfaction with the deployment.

• 5. 

  When the deployment of smart AM 100 5. When the deployment of smart metering is negatively assessed as a 5. When the deployment of smart metering is negatively assessed as a result of cost-benefit assessment metering is negatively assessed as a result of cost-benefit assessment referred to in paragraph 2, Member result of cost-benefit assessment referred to in paragraph 2, Member States shall ensure that this assessment referred to in paragraph 2, Member States shall ensure that this assessment is revised periodically in response to States shall ensure that this assessment is revised periodically or in response changes in the underlying assumptions is revised periodically and at least to significant changes in the and to technology and market every two years in response to changes underlying assumptions and to developments. Member States shall in the underlying assumptions and to technology and market developments. notify to the responsible Commission technology and market developments. Member States shall notify to the services the outcome of their updated Member States shall notify to the responsible Commission services the economic assessment as it becomes responsible Commission services the outcome of their updated economic available. outcome of their updated economic assessment as it becomes available.

  assessment as it becomes available.

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5a. The smart metering provisions in this Directive shall apply to future installations and to installations replacing older smart meters. Smart metering systems that are already installed, or for which the “start of work” as defined in Communication 2014/C 200/01 1.3. 19 (44) has started before the date of entry into force of this Directive, may remain in operation over their lifetime.

Article 20 Smart metering functionalities Where smart metering is positively AM 101 Where smart metering is positively assessed as a result of cost-benefit Where smart metering is positively assessed as a result of cost-benefit assessment referred to in Article 19(2), assessed as a result of cost-benefit assessment referred to in Article 19(2), or systematically rolled out, Member assessment referred to in Article 19(2), or systematically rolled out, Member States shall implement smart metering or systematically rolled out after the States shall implement smart metering systems in accordance with European entry into force of this Directive, systems in accordance with European standards, the provisions in Annex III, Member States shall implement smart standards, the provisions in Annex III, and in line with the following metering systems in accordance with and in line with the following principles: European standards, the provisions in principles:

Annex III, and in line with the following principles:

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(a) the metering systems accurately AM 102 (a) the metering systems accurately measure actual electricity consumption (a) the metering systems accurately measure actual electricity consumption and provide to final customers measure actual electricity consumption and are able to provide to final information on actual time of use. That and provide to final customers customers information on actual time information shall be made easily information on actual time of use. of use. [] Validated historical available and visualised to final Validated historical consumption data consumption data shall be made customers at no additional cost and at shall be made easily available and easily and securely available and near-real time in order to support visualised to final customers on at visualised to final customers on automated energy efficiency least an in-home display at no request and at no additional cost. [] programmes, demand response and additional cost. Unvalidated near-real Non-validated near-real time other services; time consumption data shall be made consumption data shall also be made

available to final customers through a easily and securely available to final standardized interface in order to customers at no additional cost, support automated energy efficiency through a standardised interface or programmes, demand response and remote access, in order to support other services; automated energy efficiency programmes, demand response and other services;;

(b) the security of the smart (b) the security of the smart metering systems and data metering systems and data communication is ensured in communication is ensured in compliance with relevant Union compliance with relevant Union security legislation having due regard security legislation having due regard of the best available techniques for of the best available techniques for ensuring the highest level of ensuring the highest level of cybersecurity protection; cybersecurity protection whilst

bearing in mind the costs and principles of proportionality;

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(c) the privacy and data protection AM 103 (c) the privacy and data protection of final customers is ensured in (c) the privacy and data protection of final customers is ensured in compliance with relevant Union data of final customers is ensured in compliance with relevant Union data protection and privacy legislation; compliance with relevant Union data protection and privacy legislation;

protection and privacy legislation; it shall in particular be possible for the final customer to have access to information on the identity of other parties which access their personal data, and on the moment of access, in order to be able to enforce their rights under Union data protection legislation;

(d) meter operators shall ensure that (d) meter operators shall ensure that the meter or meters of active customers the meter or meters of active customers who self-generate electricity can who self-generate electricity can account for electricity put into the grid account for electricity put into the grid from the active customers' premises; from the active customers' premises; (e) if final customers request it, AM 104 (e) if final customers request it, metering data on their electricity input (e) metering data on their electricity metering data on their electricity input and off-take shall be made available to input and off-take shall be made and off-take shall be made available to them, via a local standardised available to them, via a local them, via a [] standardised communication interface and/or remote standardised communication interface communication interface and/or remote access, or to a third party acting on and/or remote access, or to a third access, or to a third party acting on their behalf, in an easily party acting on their behalf, in an their behalf, in an easily understandable format as provided for easily understandable format as understandable format as provided for in Article 24, allowing them to provided for in Article 24 and as close in Article 24, allowing them to compare deals on a like-for-like basis; to real time as possible allowing them compare deals on a like-for-like basis;

to compare deals on a like-for-like basis; it shall equally be possible for final customers to download their metering data or transmit them to another party at no additional cost and in accordance with their right to data portability under Union data protection legislation;

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(f) appropriate advice and AM 105 (f) appropriate advice and information shall be given to final (f) appropriate advice and information shall be given to final customers at the time of installation of information shall be given to final customers prior to and/or at the time smart meters, in particular about their customers prior to and/or at the time of installation of smart meters, in full potential with regard to meter of installation of smart meters, in particular about their full potential with reading management and the particular about their full potential with regard to meter reading management monitoring of energy consumption, regard to meter reading management and the monitoring of energy and on the collection and processing of and the monitoring of energy consumption, and on the collection and personal data in accordance with the consumption, and on the collection and processing of personal data in applicable Union data protection processing of personal data in accordance with the applicable Union legislation; accordance with the applicable Union data protection legislation;

data protection legislation;

(g) smart metering systems shall (g) smart metering systems shall enable final customers to be metered enable final customers to be metered and settled at the same time resolution and settled at the same time resolution as the imbalance period in the national as the imbalance period in the national market. market.

Article 21 Entitlement to a smart meter 1. Where smart metering is AM 106 1. Where smart metering is negatively assessed as a result of cost 1. Where smart metering is negatively assessed as a result of costbenefit assessment referred to in negatively assessed as a result of costbenefit assessment referred to in Article 19(2), nor systematically rolled benefit assessment referred to in Article 19(2), nor systematically rolled out, Member States shall ensure that Article 19(2), nor systematically rolled out, Member States shall ensure that every final customer is entitled to have out, Member States shall ensure that every final customer is entitled, while installed or, where applicable, to have every final customer is entitled to have bearing associated costs, to have upgraded, on request and under fair installed or, where applicable, to have installed or, where applicable, to have and reasonable conditions, a smart upgraded, on request and under fair, upgraded, on request and under fair meter that complies with the following reasonable and cost-effective and reasonable conditions, a smart requirements: conditions, a smart meter that complies meter that complies with the following

with the following requirements: requirements:

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(a) is equipped where technically AM 107 (a) is equipped where technically feasible with functionalities referred to (a) is equipped with functionalities feasible with functionalities referred to in Article 20, or with a minimum set of referred to in Article 20, or with a in Article 20, or with a minimum set of functionalities to be defined and minimum set of functionalities to be functionalities to be defined and published by Member States at defined and published by Member published by Member States at national level and in line with the States at national level and in line with national level and in line with the provisions in Annex III, the provisions in Annex III, provisions in Annex III, (b) is interoperable and able to (b) is interoperable and able to deliver the desired connectivity of the deliver the desired connectivity of the metering infrastructure with consumer metering infrastructure with consumer energy management systems in nearenergy management systems in nearreal time. real time. 2. In the context of a customer 2. In the context of a customer request for a smart meter pursuant to request for a smart meter pursuant to paragraph 1, Member States or, where paragraph 1, Member States or, where a Member State has so provided, the a Member State has so provided, the designated competent authorities shall: designated competent authorities shall: (a) ensure that the offer to the final (a) ensure that the offer to the final customer requesting the installation of customer requesting the installation of a smart meter explicitly states and a smart meter explicitly states and clearly describes: clearly describes: – (i) the functions and – (i) the functions and interoperability that can be supported interoperability that can be supported by the smart meter and the services by the smart meter and the services that are feasible as well as the benefits that are feasible as well as the benefits that can be realistically attained by that can be realistically attained by having that smart meter at that moment having that smart meter at that moment in time; in time; – (ii) any associated costs to be – (ii) any associated costs to be borne by the final customer borne by the final customer; (b) ensure that it is installed within a (b) ensure that it is installed within a reasonable time and no later than three reasonable time and no later than [] months after the customer's request; four months after the customer's

request;

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(c) regularly, and at least every two (c) regularly, and at least every two years, review and make publicly years, review and make publicly available the associated costs, and available the associated costs, and trace their evolution as a result of trace their evolution as a result of technology developments and potential technology developments and potential metering system upgrades. metering system upgrades.

Article 22 Conventional metering 1. Where final customers do not 1. Where final customers do not have smart meters, Member States have smart meters, Member States shall ensure that they are provided with shall ensure that they are provided with individual conventional meters that individual conventional meters that accurately measure their actual accurately measure their actual consumption. consumption. 2. Member States shall ensure that 2. Member States shall ensure that final customers are able to easily read final customers are able to easily read their conventional meters, either their conventional meters, either directly or indirectly through an ondirectly or indirectly through an online interface or through another line interface or through another appropriate interface. appropriate interface.

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Article 23 Data management 1. When setting up the rules AM 108 1. When setting up the rules regarding the management and 1. When setting up the rules regarding the management and exchange of data, Member States or, regarding the management and exchange of data, Member States or, where a Member State has so provided, exchange of data, Member States or, where a Member State has so provided, the designated competent authorities where a Member State has so provided, the designated competent authorities shall specify the eligible parties which the designated competent authorities shall specify the [] rules on the access may have access to data of the final shall specify the eligible parties which to data of the final customer by customer with their explicit consent in may have access to data of the final eligible parties on the basis of the [] accordance with Regulation (EU) customer with their explicit consent in consent of the final customer or 2016/679 of the European Parliament accordance with Regulation (EU) other basis foreseen by in accordance and of the Council 36 . For the purpose 2016/679 of the European Parliament with Regulation (EU) 2016/679 of the of this Directive, data shall include and of the Council 52 . For the purpose European Parliament and of the metering and consumption data as well of this Directive, data shall include Council 37 . For the purpose of this as data required for consumer metering and consumption data as well Directive, data shall include metering switching. Eligible parties shall include as data required for consumer and consumption data as well as data at least customers, suppliers, switching, automated energy required for consumer switching []. transmission and distribution system efficiency programmes, energy operators, aggregators, energy service management services and demand companies, and other parties which response services. Eligible parties shall provide energy or other services to include at least customers, suppliers, customers. transmission and distribution system

operators, aggregators, energy service companies, and other parties which provide energy or other services to customers. Upon request, eligible parties shall provide customers with an overview of the parties who have access to their data.

36 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing

of personal data and on the free movement of such data, and repealing Directive 95/46/EC i (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1). 37 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing

of personal data and on the free movement of such data, and repealing Directive 95/46/EC i (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

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• 2. 

  Member States shall AM 109 2. Member States shall organise organise the management of data in 2. Member States shall organise the management of data in order to order to ensure efficient data access the secure management of data in ensure efficient and secure data access and exchange. Independently of the order to ensure efficient data access and exchange. Independently of the data management model applied in and exchange, data protection, data data management model applied in each Member State, the party or parties security, transparency, neutrality and each Member State, the party or parties responsible for data management shall data integrity. Independently of the responsible for data management shall provide to any eligible party with the data management model applied in provide to any eligible party access to explicit consent of the final customer, each Member State, the party or parties the data of the final customer on the access to the data of the final customer. responsible for data management shall basis of the explicit consent of the

Eligible parties should have at their provide to any eligible party with the final customer or other basis disposal in a non-discriminatory explicit consent of the final customer, foreseen by Regulation (EU) manner and simultaneously the access to the data of the final customer. 2016/679 []. Eligible parties should requested data. Access to data shall be Eligible parties should have at their have at their disposal in a noneasy, while relevant procedures shall disposal in a non-discriminatory discriminatory manner and be made publicly available. manner and simultaneously the simultaneously the requested data.

requested data. Access to data shall be Access to data shall be easy, while easy, while relevant procedures shall relevant procedures shall be made be made publicly available. publicly available. 2a. The processing of personal data carried out within the framework of this Directive including access to data and data storage shall be carried out in compliance with Regulation (EU) 2016/679.

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• 3. 

  Member States or, where a 3. Member States or, where a

Member State has so provided, the Member State has so provided, the designated competent authorities shall designated competent authorities shall authorise and certify the parties which authorise and certify or, where are managing data in order to ensure applicable, supervise the parties that these parties comply with the which are managing data in order to requirements of this Directive. Without ensure that these parties comply with prejudice to the tasks of the data the requirements of this Directive. protection officers under Regulation Without prejudice to the tasks of the

(EU) 2016/679, Member States may data protection officers under decide to require from parties Regulation (EU) 2016/679, Member managing data the appointment of States may decide to require from compliance officers who shall be parties managing data the appointment responsible for monitoring the of compliance officers who shall be implementation of measures taken by responsible for monitoring the the relevant parties for ensuring nonimplementation of measures taken by discriminatory access to data and the relevant parties for ensuring noncompliance with the requirements of discriminatory access to data and this Directive. Compliance officers or compliance with the requirements of bodies designated pursuant to Article this Directive. Compliance officers or

35(2)(d) may be required to fulfil the bodies designated pursuant to Article obligations of this paragraph. 35(2)(d) may be required to fulfil the

obligations of this paragraph. 4. No additional costs shall be AM 110 4. No additional costs shall be charged to final customers for access 4. No additional costs shall be charged to final customers for access to their data. Member States shall be charged to final customers for access to their data. Member States shall be responsible for setting the relevant to their data or for a request to responsible for setting the relevant costs for access to data by eligible transfer their data. Member States costs for access to data by eligible parties. Regulated entities which shall be responsible for setting the parties. [] provide data services shall not profit relevant costs for access to data by from that activity. eligible parties. Regulated entities

which provide data services shall not profit from that activity.

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Article 24 []Interoperability requirements and procedures for access to data 1. Member States shall define a AM 111 1. [] common data format and a transparent 1. Member States shall define a procedure for eligible parties to have common data format to enable access to the data listed under Article interoperability and facilitate

23 (1), in order to promote competition exchange of data and a transparent in the retail market and avoid procedure for eligible parties to have excessive administrative costs for the access to the data listed under Article eligible parties. 23 (1), in order to promote competition

in the retail market and avoid excessive administrative costs for the eligible parties.

• 2. 

  The Commission, by means of AM 112 2. In order to facilitate the full implementing acts adopted in 2. The Commission, by means of interoperability of cross-border accordance with the advisory implementing acts adopted in energy services within the EU, the procedure referred to in Article 68, accordance with the advisory Commission, by means of shall determine a common European procedure referred to in Article 68, implementing acts adopted in data format and non-discriminatory shall determine interoperability accordance with the advisory and transparent procedures for standards and a common European procedure referred to in Article 68 accessing the data, listed under Article data format and non-discriminatory shall determine, interoperability 23 (1), that will replace national data and transparent procedures for requirements [] and nonformat and procedure adopted by accessing the data, listed under Article discriminatory and transparent Member States in accordance 23 (1), and provide for a cost-effective procedures for accessing the data, with paragraph 1. Member States shall transition, taking into account listed under Article 23 (1). These ensure that market participants apply a conditions in Member States, that will requirements and procedures [] will common European data format. replace national data format and build upon existing national

  procedure adopted by Member States practices [] adopted by Member in accordance with paragraph 1. States. [] Member States shall ensure that market participants apply interoperability standards or the common European data format. Where necessary, the Commission may, following consultation of the committee referred

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to in Article 68, request that standards be drawn up by the relevant European standards organisations. Article 25 Single points of contact

Member States shall ensure the AM 113 Member States shall ensure the provision of single points of contact to Member States shall ensure the provision of single points of contact to provide customers with all necessary provision of single points of contact to provide customers with all necessary information concerning their rights, provide customers with all necessary information concerning their rights, current legislation and the means of information concerning their rights, current legislation and the means of dispute settlement available to them in current legislation, accredited dispute settlement available to them in the event of a dispute. Such contact comparison tools and the means of the event of a dispute. Such contact points may be part of general dispute settlement available to them in points may be part of general consumer information points. the event of a dispute with the consumer information points.

electricity supplier, energy service provider, aggregator or any other intermediary. Such contact points may be part of general consumer information points. In cases where the service provided is linked or is bundled with software, hardware or communication technology, final customers shall have their complaint handled through a single contact point.

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Article 26 Right to out-of-court dispute settlement Member States shall ensure that AM 114 Member States shall ensure that final . customers have access to simple, Member States shall ensure that customers have access to simple, fair, fair, transparent, independent, effective customers have access to simple, fair, transparent, independent, effective and and efficient out-of-court dispute transparent, independent, effective and efficient out-of-court dispute resolution resolution mechanisms for the efficient out-of-court dispute resolution mechanisms for the settlement of settlement of disputes concerning mechanisms for the settlement of disputes concerning rights and rights and obligations established disputes concerning rights and obligations established under this under this Directive. Where the obligations established under this Directive. Where the final costumer is costumer is a consumer within the Directive through an independent a consumer within the meaning of meaning of Directive 2013/11 i/EU of mechanism such as an energy Directive 2013/11 i/EU of the European the European Parliament and of the ombudsman or a consumer body. Parliament and of the Council 39 , such Council 38 , such out-of-court Where the costumer is a consumer out-of-court mechanisms shall comply mechanisms shall comply with the within the meaning of Directive with the quality requirements quality requirements established in 2013/11/EU of the European established in Directive 2013/11 i/EU Directive 2013/11 i/EU and provide, Parliament and of the Council 53 , such and provide, where warranted, for a where warranted, for a system of out-of-court mechanisms shall comply system of reimbursement and/or reimbursement and/or compensation. with the quality requirements compensation.

established in Directive 2013/11 i/EU and provide, where warranted, for a system of reimbursement and/or compensation. Such mechanisms shall be extended to all energy service providers, aggregators and all contracts with energy components, including bundled offers, and local energy communities, whose participation shall be mandatory.

38 OJ L 165, 18.6.2013, p. 63–79

39 OJ L 165, 18.6.2013, p. 63–79

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Member States shall ensure that electricity suppliers, energy service providers and aggregators provide information on the out-of-court dispute settlement on their website and in all communication with their customers. Member States shall regularly assess the functioning of the out-of-court dispute settlement mechanisms, especially with regards to the participation and compliance of electricity suppliers, energy service providers, aggregators and intermediaries. Article 27 Universal service

• 1. 

  Member States shall ensure that 1. Member States shall ensure that all household customers, and, where all household customers, and, where Member States deem it appropriate, Member States deem it appropriate, small enterprises (namely enterprises small enterprises [], enjoy universal with fewer than 50 occupied persons service, that is the right to be supplied and an annual turnover or balance with electricity of a specified quality sheet not exceeding EUR 10 million), within their territory at competitive enjoy universal service, that is the right reasonable easily and clearly to be supplied with electricity of a comparable, transparent and nonspecified quality within their territory discriminatory prices. To ensure the at competitive easily and clearly provision of universal service, Member comparable, transparent and non States may appoint a supplier of last discriminatory prices. To ensure the resort. Member States shall impose on provision of universal service, Member distribution companies an obligation to States may appoint a supplier of last connect customers to their network resort. Member States shall impose on under terms, conditions and tariffs set distribution companies an obligation to in accordance with the procedure laid connect customers to their network down in Article 59(6). This Directive

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under terms, conditions and tariffs set shall not prevent Member States from in accordance with the procedure laid strengthening the market position of down in Article 59(6) . This Directive the household, small and mediumshall not prevent Member States from sized consumers by promoting the strengthening the market position of possibilities of voluntary aggregation the household, small and mediumof representation for that class of sized consumers by promoting the consumers. possibilities of voluntary aggregation of representation for that class of consumers.

• 2. 

  Paragraph 1 shall be 2. Paragraph 1 shall be implemented in a transparent and nonimplemented in a transparent and nondiscriminatory way and shall not discriminatory way and shall not impede the free choice of supplier impede the free choice of supplier provided for in Article 4 . provided for in Article 4 .

  Article 28 Vulnerable customers and energy poverty 1. Member States shall take AM 115 1. Member States shall take appropriate measures to protect 1. Member States shall take appropriate measures to protect customers and shall, in particular, appropriate measures to protect customers and shall, in particular, ensure that there are adequate customers and shall, in particular, ensure that there are adequate safeguards to protect vulnerable ensure that there are adequate safeguards to protect vulnerable customers. In this context, each safeguards to protect vulnerable customers. In this context, each Member State shall define the concept customers. In this context, each Member State shall define the concept of vulnerable customers which may Member State shall define the concept of vulnerable customers which may refer to energy poverty and, inter alia, of vulnerable customers which shall refer to energy poverty and, inter alia, to the prohibition of disconnection of refer to energy poverty and may to the prohibition of disconnection of electricity to such customers in critical ensure their protection through electricity to such customers in critical times. Member States shall ensure that national social security systems and, times. Member States shall ensure that rights and obligations linked to inter alia, the prohibition of rights and obligations linked to vulnerable customers are applied. In disconnection of electricity to such vulnerable customers are applied. In particular, they shall take measures to customers in critical times. Member particular, they shall take measures to protect customers in remote areas. States shall ensure that rights and protect customers in remote areas. They shall ensure high levels of obligations linked to vulnerable They shall ensure high levels of consumer protection, particularly with customers are applied. In particular, consumer protection, particularly with

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respect to transparency regarding they shall take measures to protect respect to transparency regarding contractual terms and conditions, customers in remote areas. They shall contractual terms and conditions, general information and dispute ensure high levels of consumer general information and dispute settlement mechanisms. protection, particularly with respect to settlement mechanisms.

transparency regarding contractual terms and conditions, general information and dispute settlement mechanisms. 1a. Where Member States identified energy poverty among household customers they shall publish the parameters and criteria used to identify, measure and to monitor energy poverty.

• 2. 

  Member States shall take AM 116 2. Member States shall take appropriate measures, such as deleted appropriate measures, such as formulating national energy action formulating national energy action plans, providing benefits in social plans, providing benefits in social security systems to ensure the security systems to ensure the necessary electricity supply to necessary electricity supply to vulnerable customers, or providing for vulnerable customers, or providing for support for energy efficiency support for energy efficiency improvements, to address energy improvements, to address energy poverty where identified, including in poverty where identified, including in the broader context of poverty. Such the broader context of poverty. Such measures shall not impede the effective measures shall not impede the effective opening of the market set out in Article opening of the market set out in Article 4 or market functioning and shall be 4 or market functioning and shall be notified to the Commission, where notified to the Commission, where relevant, in accordance with the relevant, in accordance with the provisions of Article 9(4) . Such provisions of Article 9(4). Such notification may also include measures notifications may also include taken within the general social security measures taken within the general system. social security system.

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Article 29 Energy poverty Member States shall define a set of AM 117 [] criteria for the purposes of measuring Member States, in consultation with energy poverty. Member States shall relevant stakeholders, shall: continuously monitor the number of households in energy poverty and shall report on the evolution of energy poverty and measures taken to prevent it to the Commission every two years as part of their Integrated National

Energy and Climate Progress Reports in accordance with Article 21 of

[Governance Regulation as proposed by COM(2016)759 i].

(a) define a set of criteria for the purposes of measuring energy poverty based on indicators such as low income, high energy expenditure, and poor energy efficiency; (b) continuously monitor the number of households in energy poverty and analyse if these customers are sufficiently protected and improve their protection where needed;

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(c) report on the evolution of energy poverty and measures taken to prevent it to the Commission every two years as part of their Integrated National Energy and Climate Progress Reports in accordance with Article 21a of Regulation (EU) … [Governance Regulation as proposed by COM(2016)759 i]. In order to address energy poverty where identified, including in the context of broader poverty, and protect vulnerable consumers as referred to in Article 28, Member States shall establish national action plans to reduce the number of households in energy poverty including objectives and measures, both short-term and long-term, and a timeframe for achieving the objectives. Measures may include, inter alia, providing benefits in social security systems to ensure the necessary electricity supply to vulnerable customers, providing for support for energy efficiency improvements and the prohibition of disconnection of electricity at critical times.

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These action plans shall be incorporated into the Member State’s integrated national energy and climate plan as part of Regulation (EU) … [Governance Regulation as proposed by COM(2016)759 i]. The Commission, acting together with Eurostat and the Member States, shall improve the comparability of datasets including national monitoring data so that these become comparable across Member States. CHAPTER IV DISTRIBUTION SYSTEM OPERATION Article 30 Designation of distribution system operators

Member States shall designate or shall Member States shall designate or shall require undertakings that own or are require undertakings that own or are responsible for distribution systems to responsible for distribution systems to designate, for a period of time to be designate, for a period of time to be determined by Member States having determined by Member States having regard to considerations of efficiency regard to considerations of efficiency and economic balance, one or more and economic balance, one or more distribution system operators. distribution system operators.

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Article 31 Tasks of distribution system operators 1. The distribution system operator 1. The distribution system operator shall be responsible for ensuring the shall be responsible for ensuring the long-term ability of the system to meet long-term ability of the system to meet reasonable demands for the reasonable demands for the distribution of electricity, for distribution of electricity, for operating, maintaining and developing operating, maintaining and developing under economic conditions a secure, under economic conditions a secure, reliable and efficient electricity reliable and efficient electricity distribution system in its area with due distribution system in its area with due regard for the environment and energy regard for the environment and energy efficiency. efficiency. 2. In any event, it must not 2. In any event, it must not discriminate between system users or discriminate between system users or classes of system users, particularly in classes of system users, particularly in favour of its related undertakings. favour of its related undertakings. 3. The distribution system operator 3. The distribution system operator shall provide system users with the shall provide system users with the information they need for efficient information they need for efficient access to, including use of, the system. access to, including use of, the system. 4. A Member State may require the 4. A Member State may require the distribution system operator, when distribution system operator, when dispatching generating installations, to dispatching generating installations, to give priority to generating installations give priority to generating installations using renewable energy sources or using renewable energy sources or producing combined heat and power, producing combined heat and power, in accordance with Article 11 [recast in accordance with Article 11 [recast of Regulation 714/2009 i as proposed by of Regulation 714/2009 i as proposed by COM(2016)861 i/2]. COM(2016)861 i/2].

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• 5. 

  Each distribution system AM 118 5. Each distribution system operator shall procure the energy it 5. Each distribution system operator shall procure the energy it uses to cover energy losses and the operator shall act as a neutral market uses to cover energy losses [] in its non-frequency ancillary services in its facilitator in procuring the energy it system according to transparent, nonsystem according to transparent, nonuses to cover energy losses and the discriminatory and market based discriminatory and market based non-frequency ancillary services in its procedures, whenever it has such a procedures, whenever it has such a system according to transparent, nonfunction. [] function. Unless justified by a costdiscriminatory and market based benefit analysis, the procurement of procedures, whenever it has such a non-frequency ancillary services by a function. Unless justified by a costdistribution system operator shall be benefit analysis, the methodology of transparent, non-discriminatory and which shall be developed in a market-based ensuring effective transparent manner by the national participation of all market participants regulatory authority in accordance including renewable energy sources, with point c of Article 59 (1), demand response, energy storage procurement of non-frequency facilities and aggregators, in particular ancillary services by a distribution by requiring regulatory authorities or system operator shall be transparent, distribution system operators in close non-discriminatory and market-based cooperation with all market ensuring effective participation of all participants, to define technical market participants including modalities for participation in these renewable energy sources, demand markets on the basis of the technical response, energy storage facilities and requirements of these markets and the aggregators, in particular by requiring capabilities of all market participants. regulatory authorities or distribution

  system operators in close cooperation with all market participants, to define technical modalities for participation in these markets on the basis of the technical requirements of these markets and the capabilities of all market participants.

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5a. Where a distribution system operator is responsible for the procurement of products and services necessary for the efficient, reliable and secure operation of the distribution system, rules adopted by the distribution system operator for that purpose shall be objective, transparent and non-discriminatory and shall be elaborated in coordination with transmission system operators and other relevant market parties. Terms and conditions, including rules and tariffs where applicable, for the provision of such products and services by distribution system operators shall be established in accordance with Article 59(6) in a non-discriminatory and costreflective way and shall be published. 5b. In performing the tasks described in paragraph 5a, the distribution system operator shall procure the non-frequency ancillary services needed for its system according to transparent, nondiscriminatory and market-based procedures, unless the regulatory authority has assessed that the market-based provision of nonfrequency ancillary services is economically not efficient and has granted a derogation. This

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obligation to procure non-frequency ancillary services does not apply to fully integrated network components. 5c. The procurement of such products and services shall ensure the effective participation of all qualified market participants including renewable energy sources, demand response, energy storage facilities and electricity undertakings engaged in aggregation, in particular by requiring regulatory authorities and distribution system operators in close cooperation with all market participants, including transmission system operators, to define technical modalities for participation in these markets on the basis of the technical requirements of these markets and the capabilities of all market participants. 5d. Distribution system operators shall cooperate with transmission system operators for the effective participation of market participants connected to their grid to the retail, wholesale and balancing markets. Delivery of balancing services stemming from resources located in the distribution system shall be agreed with the respective transmission system operator in line with Article 182 of the Commission Regulation 2017/1485 establishing a

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guideline on electricity transmission system operation and Article 53 of the recast Electricity Regulation.

Article 32 [] Incentives for the use of flexibility in distribution networks 1. Member States shall provide the AM 119 1. Member States shall provide the necessary regulatory framework to Member States shall provide the necessary regulatory framework to allow and incentivise distribution necessary regulatory framework to allow and incentivise distribution system operators to procure services in allow and incentivise distribution system operators to procure flexibility order to improve efficiencies in the system operators to procure services in services, including congestion operation and development of the order to improve efficiencies in the management in their service area, in distribution system, including local operation and development of the order to improve efficiencies in the congestion management. In particular, distribution system, including local operation and development of the regulatory frameworks shall enable congestion management. In particular, distribution system []. In particular, distribution system operators to regulatory frameworks shall ensure regulatory frameworks shall enable procure services from resources such that distribution system operators can distribution system operators to as distributed generation, demand procure services from resources such procure services from resources such response or storage and consider as distributed generation, demand as distributed generation, demand energy efficiency measures, which response or storage and consider response or storage and consider may supplant the need to upgrade or energy efficiency measures, when energy efficiency measures, which replace electricity capacity and which such services cost-effectively supplant may supplant the need to upgrade or support the efficient and secure the need to upgrade or replace replace electricity capacity and which operation of the distribution system. electricity capacity and which support support the efficient and secure Distribution system operators shall the efficient and secure operation of operation of the distribution system. [] procure these services according to the distribution system. Distribution transparent, non-discriminatory and system operators shall procure these market based procedures. services according to transparent, nondiscriminatory

and market based procedures.

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Distribution system operators shall AM 120 1a. Distribution system operators define standardised market products Standardised market products for subject to an oversight by the for the services procured ensuring such services shall be defined at least regulatory authority, or the effective participation of all market at the national level. Distribution regulatory authority itself, shall participants including renewable system operators shall, in a define [] the specifications for the energy sources, demand response, and transparent and participatory process flexibility services procured in close aggregators. Distribution system that includes all relevant system cooperation with the transmission operators shall exchange all necessary users, the national regulatory system operators. The specifications information and coordinate with authority and the transmission system shall ensure an [] effective and nontransmission system operators in order operator, define standardised market discriminatory participation of all to ensure the optimal utilisation of products for the services procured market participants including resources, ensure the secure and ensuring effective participation of all renewable energy sources, demand efficient operation of the system and market participants including response, energy storage facilities and facilitate market development. renewable energy sources, demand []market participants engaged in Distribution system operators shall be response, storage and aggregators. aggregation. Distribution system adequately remunerated for the Distribution system operators shall operators shall exchange all necessary procurement of such services in order exchange all necessary information information and coordinate with to recover at least the corresponding and coordinate with transmission transmission system operators in order expenses, including the necessary system operators in order to ensure the to ensure the optimal utilisation of information and communication optimal utilisation of resources, ensure resources, ensure the secure and technologies expenses, including the secure and efficient operation of efficient operation of the system and expenses which correspond to the the system and facilitate market facilitate market development. necessary information and development. Distribution system Distribution system operators shall be communication infrastructure. operators shall be adequately adequately remunerated for the

remunerated for the procurement of procurement of such services in order such services in order to recover at to recover at least the corresponding least the corresponding expenses, reasonable costs [], including the including the necessary information necessary information and and communication technologies communication technologies expenses expenses, including expenses which and [] infrastructure costs. correspond to the necessary information and communication infrastructure.

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• 2. 

  The development of a AM 121 2. The development of a distribution system shall be based on a The development of a distribution distribution system shall be based on a transparent network development plan system shall be based on a transparent transparent network development plan that distribution system operators shall network development plan that that distribution system operators shall submit every two years to the distribution system operators shall [] publish at least every two years and regulatory authority. The network submit every two years to the submit to the regulatory authority and development plan shall contain the regulatory authority. In developing the the transmission system operator. planned investments for the next five network development plan, the The regulatory authority may to ten years, with particular emphasis distribution system operator shall request amendments to the plans. on the main distribution infrastructure involve, including through The network development plan shall which is required in order to connect consultation, all current or potential provide transparency on the new generation capacity and new loads system users. The network medium and long-term flexibility including re-charging points for development plan shall contain the services needed, contain the planned electric vehicles. The network planned investments for the next five investments for the next five to ten development plan shall also to ten years, with particular emphasis years, with particular emphasis on the demonstrate the use of demand on the main distribution infrastructure, main distribution infrastructure which response, energy efficiency, energy including energy efficiency, demand is required in order to connect new storage facilities or other resources that response and energy storage, which is generation capacity and new loads distribution system operator is using as required in order to connect new including re-charging points for an alternative to system expansion. generation capacity and new loads electric vehicles. The network

  including re-charging points for development plan shall also include [] electric vehicles. The network the use of demand response, energy development plan shall also efficiency, energy storage facilities or demonstrate the use of demand other resources that distribution system response, energy efficiency, energy operator is using as an alternative to storage facilities or other resources that system expansion. distribution system operator is using as an alternative to system expansion.

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The regulatory authority shall consult 2a. The [] distribution system all current or potential system users on operators shall consult all [] relevant the network development plan. The system users on the network regulatory authority shall publish the development plan. The [] distribution result of the consultation process on system operators shall publish the the proposed investments. results of the consultation process

along with [] the network development plan and submit to the regulatory authority.

Member States may decide not to 2b. Member States may decide not apply this obligation to integrated to apply this obligation to integrated undertakings serving less than 100 000 undertakings serving less than 100 000 connected consumers, or serving connected consumers, or serving isolated systems. isolated systems.

Article 33 Integration of electro-mobility into the electricity network 1. Member States shall provide the AM 122 1. Member States shall provide the necessary regulatory framework to 1. Without prejudice to Directive necessary regulatory framework to facilitate the connection of publicly 2014/94/EU, Member States shall facilitate the connection of publicly accessible and private recharging provide the necessary regulatory accessible and private recharging points to the distribution networks. framework to facilitate the connection points to the distribution networks. Member States shall ensure that of publicly accessible and private Member States shall ensure that distribution system operators cooperate recharging points to the distribution distribution system operators cooperate on a non-discriminatory basis with any networks. Member States shall ensure on a non-discriminatory basis with any undertaking that owns, develops, that distribution system operators undertaking that owns, develops, operates or manages recharging points cooperate on a non-discriminatory operates or manages recharging points for electric vehicles, including with basis with any undertaking that owns, for electric vehicles, including with regard to connection to the grid. develops, operates or manages regard to connection to the grid.

recharging points for electric vehicles, including with regard to connection to the grid.

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AM 123 1a. Distribution system operators

1a. (new) Distribution system shall not be allowed to own, develop,

operators shall not be allowed to own, manage or operate recharging points

develop, manage or operate for electric vehicles, with the

recharging points for electric vehicles. exception of those cases where

distribution system operators own

private recharging points solely for

their own use.

• 2. 

  Member States may allow AM 124 2. By way of derogation from

distribution system operators to own, 2. By way of derogation from paragraph 1a, Member States may

develop, manage or operate recharging paragraph 1a, Member States may allow distribution system operators to

points for electric vehicles only if the allow distribution system operators to own, develop, manage or operate

following conditions are fulfilled: own, develop, manage or operate recharging points for electric vehicles

recharging points for electric vehicles only if the following conditions are

only if all of the following conditions fulfilled:

are fulfilled:

(a) other parties, following an open AM 125 (a) other parties, following an open

and transparent tendering procedure, (a) other parties, following an open and transparent tendering procedure, []

have not expressed their interest to and transparent tendering procedure, could not be awarded with a right to

own, develop, manage or operate subject to review by the national own, develop, manage or operate

regulatory authority, have not recharging points for electric vehicles;

expressed their interest to own,

develop, manage or operate recharging

points for electric vehicles or cannot

deliver those services at a reasonable

cost and in a timely manner ;

(b) the regulatory authority has (b) the regulatory authority has

granted its approval. carried out an ex-ante review of the

conditions of the tendering

procedure under subparagraph (a)

and has granted its approval;

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(c) in operation of the recharging points the distribution system operator must not discriminate between system users or classes of system users, particularly in favour of its related undertakings.

• 3. 

  Articles 35 and 56 shall apply to 3. [] distribution system operators engaged in ownership, development, operation or management of recharging points.

• 4. 

  Member States shall perform at AM 126 4. Where Member States have regular intervals or at least every five 4. Member States shall perform at implemented the conditions set out years a public consultation in order to regular intervals or at least every five in paragraph 2, Member States or re-assess the potential interest of years a public consultation in order to their designated competent market parties to own, develop, operate re-assess the potential interest of authorities shall perform at regular or manage recharging points for market parties to own, develop, operate intervals or at least every five years a electric vehicles. In case the public or manage recharging points for public consultation in order to reconsultation indicates that third parties electric vehicles. In case the public assess the potential interest of market are able to own, develop, operate or consultation indicates that third parties parties to own, develop, operate or manage such points, Member States are able to own, develop, operate or manage recharging points for electric shall ensure that distribution system manage such points, Member States vehicles on the basis of third party operators' activities in this regard are shall ensure that distribution system access. In case the public consultation phased-out. operators' activities in this regard are indicates that third parties are able to

phased-out and that the associated own, develop, operate or manage such

costs can be recovered. points, Member States shall ensure that

distribution system operators' activities

in this regard are phased-out subject to

a successful completion of a

procedure referred to in paragraph

(2)a. As part of the conditions for

this procedure regulatory authorities

may allow the distribution system

operators to recover the residual

value of the investment made into

recharging infrastructure.

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Article 34 Tasks of distribution system operators in data management Member States shall ensure that all AM 127 In compliance with applicable data eligible parties have non Member States shall ensure that all provisions regulations, Member discriminatory access to data under eligible parties have non States shall ensure that all eligible clear and equal terms. In Member discriminatory access to data under parties have non-discriminatory access States where smart metering systems clear and equal terms, and are in to data under clear and equal terms. In have been implemented according to compliance with data and information Member States where smart metering Article 19 and distribution system protection legislation. In Member systems have been implemented operators are involved in data States where smart metering systems according to Article 19 and distribution management, compliance programmes have been implemented according to system operators are involved in data as set in Article 35(2)(d) shall include Article 19 and distribution system management, compliance programmes specific measures in order to exclude operators are involved in data as set in Article 35(2)(d) shall include discriminatory access to data from management, compliance programmes specific measures in order to exclude eligible parties as provided for in as set in Article 35(2)(d) shall include discriminatory access to data from Article 23. Where distribution system specific measures in order to exclude eligible parties as provided for in operators are not subject to Article discriminatory access to data from Article 23. Where distribution system 35(1), (2) and (3), Member States shall eligible parties as provided for in operators are not subject to Article take all necessary measures to ensure Article 23. Where distribution system 35(1), (2) and (3), Member States shall that the vertically integrated operators are not subject to Article take all necessary measures to ensure undertaking do not have privileged 35(1), (2) and (3), Member States shall that the vertically integrated access to data for the conduct of its take all necessary measures to ensure undertaking do not have privileged supply activity. that the vertically integrated access to data for the conduct of its

undertaking do not have privileged supply activity. access to data for the conduct of its supply activity, if necessary by requiring the creation of a central data management platform to be managed by the transmission system operator or another neutral entity .

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Article 35 Unbundling of distribution system operators 1. Where the distribution system 1. Where the distribution system operator is part of a vertically operator is part of a vertically integrated undertaking, it shall be integrated undertaking, it shall be independent at least in terms of its independent at least in terms of its legal form, organisation and decision legal form, organisation and decision making from other activities not making from other activities not relating to distribution. Those rules relating to distribution. Those rules shall not create an obligation to shall not create an obligation to separate the ownership of assets of the separate the ownership of assets of the distribution system operator from the distribution system operator from the vertically integrated undertaking. vertically integrated undertaking. 2. In addition to the requirements 2. In addition to the requirements under paragraph 1, where the under paragraph 1, where the distribution system operator is part of a distribution system operator is part of a vertically integrated undertaking, it vertically integrated undertaking, it shall be independent in terms of its shall be independent in terms of its organisation and decision-making from organisation and decision-making from the other activities not related to the other activities not related to distribution. In order to achieve this, distribution. In order to achieve this, the following minimum criteria shall the following minimum criteria shall apply: apply: (a) those persons responsible for the (a) those persons responsible for the management of the distribution system management of the distribution system operator must not participate in operator must not participate in company structures of the integrated company structures of the integrated electricity undertaking responsible, electricity undertaking responsible, directly or indirectly, for the day-todirectly or indirectly, for the day-today operation of the generation, day operation of the generation, transmission or supply of electricity; transmission or supply of electricity;

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(b) appropriate measures must be (b) appropriate measures must be taken to ensure that the professional taken to ensure that the professional interests of the persons responsible for interests of the persons responsible for the management of the distribution the management of the distribution system operator are taken into account system operator are taken into account in a manner that ensures that they are in a manner that ensures that they are capable of acting independently; capable of acting independently;

(c) the distribution system operator (c) the distribution system operator must have effective decision-making must have effective decision-making rights, independent from the integrated rights, independent from the integrated electricity undertaking, with respect to electricity undertaking, with respect to assets necessary to operate, maintain or assets necessary to operate, maintain or develop the network. In order to fulfil develop the network. In order to fulfil those tasks, the distribution system those tasks, the distribution system operator shall have at its disposal the operator shall have at its disposal the necessary resources including human, necessary resources including human, technical, physical and financial technical, physical and financial resources. This should not prevent the resources. This should not prevent the existence of appropriate coordination existence of appropriate coordination mechanisms to ensure that the mechanisms to ensure that the economic and management supervision economic and management supervision rights of the parent company in respect rights of the parent company in respect of return on assets, regulated indirectly of return on assets, regulated indirectly in accordance with Article 59(6), in a in accordance with Article 59(6), in a subsidiary are protected. In particular, subsidiary are protected. In particular, this shall enable the parent company to this shall enable the parent company to approve the annual financial plan, or approve the annual financial plan, or any equivalent instrument, of the any equivalent instrument, of the distribution system operator and to set distribution system operator and to set global limits on the levels of global limits on the levels of indebtedness of its subsidiary. It shall indebtedness of its subsidiary. It shall not permit the parent company to give not permit the parent company to give instructions regarding day-to-day instructions regarding day-to-day operations, nor with respect to operations, nor with respect to individual decisions concerning the individual decisions concerning the

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construction or upgrading of construction or upgrading of distribution lines, that do not exceed distribution lines, that do not exceed the terms of the approved financial the terms of the approved financial plan, or any equivalent instrument; and plan, or any equivalent instrument; and

(d) the distribution system operator (d) the distribution system operator must establish a compliance must establish a compliance programme, which sets out measures programme, which sets out measures taken to ensure that discriminatory taken to ensure that discriminatory conduct is excluded, and ensure that conduct is excluded, and ensure that observance of it is adequately observance of it is adequately monitored. The compliance monitored. The compliance programme shall set out the specific programme shall set out the specific obligations of employees to meet that obligations of employees to meet that objective. An annual report, setting out objective. An annual report, setting out the measures taken, shall be submitted the measures taken, shall be submitted by the person or body responsible for by the person or body responsible for monitoring the compliance monitoring the compliance programme, the compliance officer of programme, the compliance officer of the distribution system operator, to the the distribution system operator, to the regulatory authority referred to in regulatory authority referred to in Article 57(1) and shall be published. Article 57(1) and shall be published. The compliance officer of the The compliance officer of the distribution system operator shall be distribution system operator shall be fully independent and shall have access fully independent and shall have access to all the necessary information of the to all the necessary information of the distribution system operator and any distribution system operator and any affiliated undertaking to fulfil his task. affiliated undertaking to fulfil his task.

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• 3. 

  Where the distribution system 3. Where the distribution system operator is part of a vertically operator is part of a vertically integrated undertaking, the Member integrated undertaking, the Member States shall ensure that the activities of States shall ensure that the activities of the distribution system operator are the distribution system operator are monitored by regulatory authorities or monitored by regulatory authorities or other competent bodies so that it other competent bodies so that it cannot take advantage of its vertical cannot take advantage of its vertical integration to distort competition. In integration to distort competition. In particular, vertically integrated particular, vertically integrated distribution system operators shall not, distribution system operators shall not, in their communication and branding, in their communication and branding, create confusion in respect of the create confusion in respect of the separate identity of the supply branch separate identity of the supply branch of the vertically integrated of the vertically integrated undertaking. undertaking. 4. Member States may decide not 4. Member States may decide not to apply paragraphs 1, 2 and 3 to to apply paragraphs 1, 2 and 3 to integrated electricity undertakings integrated electricity undertakings serving less than 100000 connected serving less than 100000 connected customers, or serving small isolated customers, or serving small isolated systems. systems.

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Article 36 Ownership of energy storage facilities by distribution system operators 1. Distribution system operators AM 128 1. Distribution system operators shall not be allowed to own, develop, 1. Distribution system operators shall not be allowed to own, develop, manage or operate energy storage shall not be allowed to own, develop, manage or operate energy storage facilities. manage or operate energy storage facilities.

facilities, except equipment used by the distribution system operators for local short-term control of the distribution system where there is no influence on energy and nonfrequency ancillary services markets, and where the national regulatory authority has granted its approval.

• 2. 

  By way of derogation from AM 129 2. By way of derogation from paragraph 1, Member States may allow 2. By way of derogation from paragraph 1, Member States may allow distribution system operators to own, paragraph 1, Member States may allow distribution system operators to own, develop, manage or operate storage distribution system operators to own, develop, manage or operate energy facilities only if the following develop, manage or operate storage storage facilities which are fully conditions are fulfilled: facilities only if all of the following integrated network components and

  conditions are fulfilled: the regulatory authority has granted its approval or [] if all of the

  following conditions are fulfilled: (-a) such facilities are necessary for the distribution system operators to fulfil their obligations under this Directive for the efficient, reliable and secure operation of the distribution system and they are not used to buy or sell electricity to the wholesale market, including balancing markets;

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(a) other parties, following an open AM 130 (a) other parties, following an open, and transparent tendering procedure, (a) other parties, following an open [] transparent and non-discriminatory have not expressed their interest to and transparent tendering procedure, tendering procedure, subject to review own, develop, manage or operate subject to review by the national and approval by the regulatory storage facilities; regulatory authority, have not authority [] have not been awarded

expressed their interest to own, with a right to own, develop, manage develop, manage or operate storage [] or operate such [] facilities. facilities or cannot deliver those Regulatory authorities may draw up services at a reasonable cost and in a guidelines or procurement clauses to timely manner; help distribution system operators ensure a fair tendering procedure; and

(b) such facilities are necessary for AM 131 (b) [] the distribution system operators to (b) such facilities are necessary for fulfil their obligations under this the distribution system operators to

Directive for the efficient, reliable and fulfil their obligations under this secure operation of the distribution Directive for the efficient, reliable and system; and secure operation of the distribution

system, and the ownership or operation of the facility does not influence competitive energy markets;

(c) the regulatory authority has (c) the regulatory authority has assessed the necessity of such assessed the necessity of such derogation taking into account the derogation and has carried out an conditions under points (a) and (b) and assessment of the tendering has granted its approval. procedure, including the conditions,

[] and has granted its approval. AM 132

2a. (new) National regulatory authorities may draw up guidelines or procurement clauses to aid distribution system operators in ensuring a fair tendering procedure.

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• 3. 

  Articles 35 and 56 shall apply to 3. [] distribution system operators engaged in ownership, development, operation or management of energy storage facilities.

• 4. 

  Regulatory authorities shall AM 133 4. [] The distribution system perform at regular intervals or at least 4. Member States shall perform at operators or the regulatory every five years a public consultation regular intervals or at least every five authority shall perform at regular in order to re-assess the potential years a review of the ability for intervals or at least every five years a interest of market parties to invest, existing storage facilities to be public consultation for the required develop, operate or manage energy tendered and where appropriate a energy storage facilities in order to storage facilities. In case the public public consultation in order to reassess the potential availability and consultation indicates that third parties assess the potential interest of market interest of market parties to invest [] in are able to own, develop, operate or parties to invest, develop, operate or such facilities. [] Where the public manage such facilities, Member States manage energy storage facilities. In consultation, as assessed by the shall ensure that distribution system case the review or the public regulatory authority, indicates that operators' activities in this regard are consultation indicates that third parties third parties are able to own, develop, phased-out. are able to own, develop, operate or operate or manage such facilities in a

  manage such facilities, Member States cost-effective manner, [] regulatory shall ensure that distribution system authorities shall ensure that operators' activities in this regard are distribution system operators' activities phased-out and that the associated in this regard are phased-out within 24 costs can be recovered. months. As part of the conditions for this procedure, regulatory authorities may allow the distribution system operators to receive reasonable compensation, in particular to recover the residual value of the investment they made into energy storage facilities. 4a. Paragraph 4 shall not apply for the usual depreciation period of new battery storage facilities with a final investment decision until 2024.

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AM 134 Article 36a

New activities of distribution system operators

• 1. 

  Distribution system operators shall not be allowed to carry out activities beyond those set out in this Directive and in Regulation (EU) … [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2]. 2. Member States may allow distribution system operators to carry out activities other than those provided for in this Directive and in Regulation (EU) … [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2] where the regulatory authority has assessed the necessity of such a derogation and has granted its approval and the following conditions are met: (a) other parties, following an open and transparent tendering procedure, have not expressed their interest to carry out those activities; (b) such activities are necessary for the distribution system operators to fulfil their obligations under this Directive for the efficient, reliable and secure operation of the distribution system;

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(c) such activities are necessary for the distribution system operators to fulfil their obligations under the Regulation (EU) … [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2], including an obligation to cooperate with transmission system operators, ensuring the cost-efficient, secure and reliable development and operation of the distribution and transmission networks as a whole. Article 37 Confidentiality obligation of distribution system operators

Without prejudice to Article 55 or any Without prejudice to Article 55 or any other legal duty to disclose other legal duty to disclose information, the distribution system information, the distribution system operator must preserve the operator must preserve the confidentiality of commercially confidentiality of commercially sensitive information obtained in the sensitive information obtained in the course of carrying out its business, and course of carrying out its business, and shall prevent information about its own shall prevent information about its own activities which may be commercially activities which may be commercially advantageous being disclosed in a advantageous being disclosed in a discriminatory manner. discriminatory manner.

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Article 38 Closed distribution systems 1. Member States may provide for 1. Member States may provide for national regulatory authorities or other national regulatory authorities or other competent authorities to classify a competent authorities to classify a system which distributes electricity system which distributes electricity within a geographically confined within a geographically confined industrial, commercial or shared industrial, commercial or shared services site and does not, without services site and does not, without prejudice to paragraph 4, supply prejudice to paragraph 4, supply household customers, as a closed household customers, as a closed distribution system if: distribution system if: (a) for specific technical or safety (a) for specific technical or safety reasons, the operations or the reasons, the operations or the production process of the users of that production process of the users of that system are integrated; or system are integrated; or (b) that system distributes electricity (b) that system distributes electricity primarily to the owner or operator of primarily to the owner or operator of the system or their related the system or their related undertakings. undertakings. 2. Member States may provide for 2. Member States may provide for national regulatory authorities to national regulatory authorities to exempt the operator of a closed exempt the operator of a closed distribution system from: distribution system from:

(a) the requirement under (a) the requirement under Article

Article 31(5) to procure the energy it 31(5) to procure the energy it uses to uses to cover energy losses and the cover energy losses and the nonnon-frequency ancillary services in its frequency ancillary services in its system according to transparent, nonsystem according to transparent, nondiscriminatory and market based discriminatory and market based procedures; procedures;

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(b) the requirement under Article 6 (b) the requirement under Article 6

• (1) 

  that tariffs, or the methodologies (1) that tariffs, or the methodologies underlying their calculation, are underlying their calculation, are approved prior to their entry into force approved prior to their entry into force in accordance with Article 59 (1) . in accordance with Article 59 (1) . 3. Where an exemption is granted 3. Where an exemption is granted under paragraph 2, the applicable under paragraph 2, the applicable tariffs, or the methodologies tariffs, or the methodologies underlying their calculation, shall be underlying their calculation, shall be reviewed and approved in accordance reviewed and approved in accordance with Article 59(1) upon request by a with Article 59(1) upon request by a user of the closed distribution system. user of the closed distribution system. 4. Incidental use by a small 4. Incidental use by a small number of households with number of households with employment or similar associations employment or similar associations with the owner of the distribution with the owner of the distribution system and located within the area system and located within the area served by a closed distribution system served by a closed distribution system shall not preclude an exemption under shall not preclude an exemption under paragraph 2 being granted. paragraph 2 being granted. 5. Closed distribution systems shall 5. Closed distribution systems shall be considered as distribution systems be considered as distribution systems for the purpose of the Directive. for the purpose of the Directive.

  Article 39 Combined operator Article 35(1) shall not prevent the Article 35(1) shall not prevent the operation of a combined transmission operation of a combined transmission and distribution system operator and distribution system operator provided that operator complies with provided that operator complies with Articles 43(1), or 44 and 45, or Section Articles 43(1), or 44 and 45, or Section

66(2). 66(2).

7506/18 GW/st 165

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Chapter V GENERAL RULES APPLICABLE TO THE TRANSMISSION SYSTEM OPERATOR

Article 40 Tasks of transmission system operators 1. Each transmission system 1. Each transmission system operator shall be responsible for: operator shall be responsible for: (a) ensuring the long-term ability of (a) ensuring the long-term ability of the system to meet reasonable demands the system to meet reasonable demands for the transmission of electricity, for the transmission of electricity, operating, maintaining and developing operating, maintaining and developing under economic conditions secure, under economic conditions secure, reliable and efficient transmission reliable and efficient transmission systems with due regard to the systems with due regard to the environment, in close cooperation with environment , in close cooperation neighbouring transmission system with neighbouring transmission system operators and distribution system operators and distribution system operators; operators; (b) ensuring adequate means to (b) ensuring adequate means to meet its obligations; meet its obligations; (c) contributing to security of (c) contributing to security of supply through adequate transmission supply through adequate transmission capacity and system reliability; capacity and system reliability; (d) managing electricity flows on (d) managing electricity flows on the system, taking into account the system, taking into account exchanges with other interconnected exchanges with other interconnected systems. To that end, the transmission systems. To that end, the transmission system operator shall be responsible system operator shall be responsible for ensuring a secure, reliable and for ensuring a secure, reliable and efficient electricity system and, in that efficient electricity system and, in that context, for ensuring the availability of context, for ensuring the availability of all necessary ancillary services, all necessary ancillary services, including those provided by demand including those provided by demand response and energy storage, insofar as response and energy storage, insofar as such availability is independent from such availability is independent from any other transmission system with any other transmission system with which its system is interconnected; which its system is interconnected;

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(e) providing to the operator of any (e) providing to the operator of any other system with which its system is other system with which its system is interconnected sufficient information interconnected sufficient information to ensure the secure and efficient to ensure the secure and efficient operation, coordinated development operation, coordinated development and interoperability of the and interoperability of the interconnected system; interconnected system; (f) ensuring non-discrimination as (f) ensuring non-discrimination as between system users or classes of between system users or classes of system users, particularly in favour of system users, particularly in favour of its related undertakings; its related undertakings; (g) providing system users with the (g) providing system users with the information they need for efficient information they need for efficient access to the system; and access to the system; [] (h) collecting congestion rents and (h) collecting congestion rents and payments under the inter-transmission payments under the inter-transmission system operator compensation system operator compensation mechanism, in compliance with mechanism, in compliance with Article Article 46 of [recast of Regulation 46 of [recast of Regulation 714/2009 i 714/2009 as proposed by as proposed by COM(2016)861 i/2], COM(2016)861 i/2], granting and granting and managing third-party managing third-party access and giving access and giving reasoned reasoned explanations when it denies explanations when it denies such such access, which shall be monitored access, which shall be monitored by by the national regulatory authorities; the national regulatory authorities; in in carrying out their tasks under this carrying out their tasks under this Article transmission system operators Article transmission system operators shall primarily facilitate market shall primarily facilitate market integration. integration;

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AM 135 (ha) (new) standardisation, in cooperation with distribution system operators, of relevant data formats and protocols to facilitate crossborder exchange of data;

(i) procuring ancillary services (i) procuring ancillary services [] to from market participants to ensure ensure operational security; operational security.

(j) adopting a framework for the AM 136 (j) adopting a framework for the cooperation and coordination between (j) cooperating with the Agency, cooperation and coordination between regional operational centres. regional coordination centres and the [] Regional Security Coordinators;

ENTSO for electricity on the adoption of a framework for the cooperation and coordination between regional coordination centres; AM 137 (ja) participate in establishing of (ja) (new) digitalisation of the European and national adequacy transmission systems to ensure, assessments pursuant to Chapter IV among others, efficient real time data of [recast of Regulation 714/2009 i as acquisition and use, smart proposed by COM(2016)861 i/2]; substations; AM 138 (jb) digitalisation of transmission (jb) (new) data management, cyber systems; security and data protection. (jc) data management, including development of data management systems, cyber security and data protection subject to applicable provisions and rules and without prejudice to the competences of other authorities; (jd) participation in development of demand response.

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• 2. 

  Member States may provide that AM 139 2. Member States may provide that one or several responsibilities listed 2. Member States may provide that one or several responsibilities listed under points (a) to (j) of paragraph 1 one or several responsibilities listed under points (a) to (jd) of paragraph 1 be assigned to a transmission system under points (a) to (j) of paragraph 1 be assigned to a transmission system operator other than the one which be assigned to a transmission system operator other than the one which owns the transmission system to which operator other than the one which owns the transmission system to which the concerned responsibilities would owns the transmission system to which the concerned responsibilities would otherwise be applicable. The the concerned responsibilities would otherwise be applicable. The transmission system operator to which otherwise be applicable. The transmission system operator to which the tasks are assigned shall be certified transmission system operator to which the tasks are assigned shall be certified as ownership unbundled and fulfil the the tasks are assigned shall be certified as ownership unbundled, independent requirements provided for in Article as ownership unbundled, independent system operator or independent 43, but does not have to own the system operator or independent transmission operator, and fulfil the transmission system it is responsible transmission operator and fulfil the requirements provided for in Article for. The transmission system operator requirements provided for in Article 43, but does not have to own the which owns the transmission system 43, but does not have to own the transmission system it is responsible shall fulfil the requirements provided transmission system it is responsible for. The transmission system operator for in Chapter VI and be certified in for. The transmission system operator which owns the transmission system accordance with Article 43. which owns the transmission system shall fulfil the requirements provided

  shall fulfil the requirements provided for in Chapter VI and be certified in for in Chapter VI and be certified in accordance with Article 43. This is accordance with Article 43. without prejudice to the possibility for transmission system operators which are certified as ownership unbundled, independent system operator or independent transmission operator to delegate on their own initiative and under their supervision certain tasks to other transmission system operators which are certified as ownership unbundled, independent system operator or independent transmission operator where this delegation of tasks does not

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endanger the effective and independent decision-making rights of the delegating transmission system operator.

• 3. 

  In performing the tasks listed in AM 140 3. [] paragraph 1, the transmission system 3. In performing the tasks listed in operator shall take into account the paragraph 1, the transmission system functions performed by the regional operator shall take into account the operational centres and cooperate as recommendations issued by the necessary with neighbouring regional coordination centres and transmission system operators. cooperate as necessary with

  neighbouring transmission system operators.

• 4. 

  In performing the task described AM 141 4. In performing the task described in point (i) of paragraph 1, the 4. In performing the task described in point (i) of paragraph 1, the transmission system operator shall in point (i) of paragraph 1, the transmission system operators shall [] ensure that the procurement of transmission system operator shall procure balancing services [] balancing services and, unless justified ensure that the procurement of according to: by a cost-benefit analysis, nonbalancing services and, unless justified frequency ancillary services, is: by a cost-benefit or technical viability

  analysis and approved by the competent authority, non-frequency ancillary services , is:

(a) transparent, non-discriminatory (a) transparent, non-discriminatory and market-based; and market-based procedures;

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(b) ensures effective participation of (b) ensures effective participation of all market participants including all qualified electricity undertakings renewable energy sources, demand and market participants including response, energy storage facilities and renewable energy sources, demand aggregators, in particular by requiring response, energy storage facilities and regulatory authorities or transmission [] market participants engaged in system operators in close cooperation aggregation. For that purpose, [] with all market participants, to define regulatory authorities [] and technical modalities for participation in transmission system operators shall, in these markets on the basis of the close cooperation with all market technical requirements of these participants, [] define technical markets and the capabilities of all modalities for participation in these market participants markets on the basis of the technical

requirements of these markets in accordance with the Commission Regulation 2017/1485 establishing a guideline on electricity transmission system operation [].

• 5. 

  Transmission system operators 5. [] shall not own assets that provide ancillary services save under the conditions set out in Article 54.

  AM 142 5a. The requirements of 5a. (new) Member States shall provide paragraph 4 shall apply to the the necessary regulatory framework provision of those non-frequency to allow and incentivise transmission ancillary services by transmission system operators to procure services system operators, unless the in order to improve efficiencies in the regulatory authority has assessed operation and development of the that the market-based provision of transmission system, including local non-frequency ancillary services is congestion management. In economically not efficient and has particular, regulatory frameworks granted a derogation. shall ensure that transmission system operators can procure services from resources such as demand response or

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storage and consider energy efficiency measures, when such services cost-effectively supplant the need to upgrade or replace electricity capacity and which support the efficient and secure operation of the transmission system. Transmission system operators shall procure those services in accordance with transparent, non-discriminatory and market based procedures. Standardised market products for such services shall be defined at least at the national level. Transmission system operators shall, in a transparent and participatory process that includes all relevant system users and the national regulatory authority, define standardised market products for the services procured ensuring effective participation of all market participants including renewable energy sources, demand response, storage and aggregators. Transmission system operators shall exchange all necessary information and coordinate with distribution system operators in order to ensure the optimal utilisation of resources, ensure the secure and efficient operation of the system and facilitate market development. Transmission system operators shall be adequately remunerated for the procurement of such services in order to recover at

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least the corresponding expenses, including the necessary information and communication technologies expenses. 5b. This obligation to procure non-frequency ancillary services does not apply to fully integrated network components. Article 41

Confidentiality and transparency requirements for transmission system operators and transmission system owners 1. Without prejudice to Article 55 1. Without prejudice to Article 55 or any other legal duty to disclose or any other legal duty to disclose information, each transmission system information, each transmission system operator and each transmission system operator and each transmission system owner shall preserve the owner shall preserve the confidentiality of commercially confidentiality of commercially sensitive information obtained in the sensitive information obtained in the course of carrying out its activities, and course of carrying out its activities, and shall prevent information about its own shall prevent information about its own activities which may be commercially activities which may be commercially advantageous from being disclosed in a advantageous from being disclosed in a discriminatory manner. In particular it discriminatory manner. In particular it shall not disclose any commercially shall not disclose any commercially sensitive information to the remaining sensitive information to the remaining parts of the undertaking, unless this is parts of the undertaking, unless this is necessary for carrying out a business necessary for carrying out a business transaction. In order to ensure the full transaction. In order to ensure the full respect of the rules on information respect of the rules on information unbundling, Member States shall unbundling, Member States shall ensure that the transmission system ensure that the transmission system owner and the remaining part of the owner and the remaining part of the undertaking do not use joint services, undertaking do not use joint services, such as joint legal services, apart from such as joint legal services, apart from purely administrative or IT functions. purely administrative or IT functions.

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• 2. 

  Transmission system operators 2. Transmission system operators shall not, in the context of sales or shall not, in the context of sales or purchases of electricity by related purchases of electricity by related undertakings, misuse commercially undertakings, misuse commercially sensitive information obtained from sensitive information obtained from third parties in the context of providing third parties in the context of providing or negotiating access to the system. or negotiating access to the system.

• 3. 

  Information necessary for 3. Information necessary for effective competition and the efficient effective competition and the efficient functioning of the market shall be functioning of the market shall be made public. That obligation shall be made public. That obligation shall be without prejudice to preserving the without prejudice to preserving the confidentiality of commercially confidentiality of commercially sensitive information. sensitive information.

  Article 42 Decision-making powers regarding the connection of new power plant to the transmission system 1. The transmission system 1. The transmission system operator shall establish and publish operator shall establish and publish transparent and efficient procedures for transparent and efficient procedures for non-discriminatory connection of new non-discriminatory connection of new power plants and energy storage power plants and energy storage facilities to the transmission system. facilities to the transmission system. Those procedures shall be subject to Those procedures shall be subject to the approval of national regulatory the approval of national regulatory authorities. authorities. 2. The transmission system 2. The transmission system operator shall not be entitled to refuse operator shall not be entitled to refuse the connection of a new power plant or the connection of a new power plant or energy storage facility on the grounds energy storage facility on the grounds of possible future limitations to of possible future limitations to available network capacities, such as available network capacities, such as congestion in distant parts of the congestion in distant parts of the transmission system. The transmission transmission system. The transmission system operator shall supply necessary system operator shall supply necessary information. information. This shall be without

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prejudice to the possibility for transmission system operators to limit the guaranteed connection capacity or offer connections subject to operational limitations to ensure economic efficiency regarding new power plants or energy storage facilities where such limitations have been approved by the regulatory authority. The regulatory authority shall ensure that any limitations in guaranteed connection capacity or operational limitations are introduced on the basis of transparent and non-discriminatory procedures and do not create undue barriers to market entry. Where the power plant or energy storage facility bears the costs related to ensuring unlimited connection, no limitation shall apply.

• 3. 

  The transmission system 3. The transmission system operator shall not be entitled to refuse operator shall not be entitled to refuse a new connection point, on the ground a new connection point, on the ground that it will lead to additional costs that it will lead to additional costs linked with necessary capacity increase linked with necessary capacity increase of system elements in the close-up of system elements in the close-up range to the connection point. range to the connection point.

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Chapter VI UNBUNDLING OF TRANSMISSION SYSTEM OPERATORS

SECTION 1 OWNERSHIP UNBUNDLING

Article 43 Ownership unbundling of transmission systems and transmission system operators 1. Member States shall ensure that: 1. Member States shall ensure that:

(a) each undertaking which owns a (a) each undertaking which owns a transmission system acts as a transmission system acts as a transmission system operator; transmission system operator; (b) the same person or persons are (b) the same person or persons are entitled neither: entitled neither: – directly or indirectly to exercise – directly or indirectly to exercise control over an undertaking control over an undertaking performing any of the functions of performing any of the functions of generation or supply, and directly or generation or supply, and directly or indirectly to exercise control or indirectly to exercise control or exercise any right over a transmission exercise any right over a transmission system operator or over a transmission system operator or over a transmission system; nor system; nor – directly or indirectly to exercise – directly or indirectly to exercise control over a transmission system control over a transmission system operator or over a transmission system, operator or over a transmission system, and directly or indirectly to exercise and directly or indirectly to exercise control or exercise any right over an control or exercise any right over an undertaking performing any of the undertaking performing any of the functions of generation or supply; functions of generation or supply;

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(c) the same person or persons are (c) the same person or persons are not entitled to appoint members of the not entitled to appoint members of the supervisory board, the administrative supervisory board, the administrative board or bodies legally representing board or bodies legally representing the undertaking, of a transmission the undertaking, of a transmission system operator or a transmission system operator or a transmission system, and directly or indirectly to system, and directly or indirectly to exercise control or exercise any right exercise control or exercise any right over an undertaking performing any of over an undertaking performing any of the functions of generation or supply; the functions of generation or supply; and and (d) the same person is not entitled to (d) the same person is not entitled to be a member of the supervisory board, be a member of the supervisory board, the administrative board or bodies the administrative board or bodies legally representing the undertaking, of legally representing the undertaking, of both an undertaking performing any of both an undertaking performing any of the functions of generation or supply the functions of generation or supply and a transmission system operator or and a transmission system operator or a transmission system. a transmission system. 2. The rights referred to in points 2. The rights referred to in points (b) and (c) of paragraph 1 shall (b) and (c) of paragraph 1 shall include, in particular: include, in particular:

(a) the power to exercise voting (a) the power to exercise voting rights; rights; (b) the power to appoint members (b) the power to appoint members of the supervisory board, the of the supervisory board, the administrative board or bodies legally administrative board or bodies legally representing the undertaking; or representing the undertaking; or (c) the holding of a majority share. (c) the holding of a majority share.

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• 3. 

  For the purpose of 3. For the purpose of paragraph 1(b), the notion ‘undertaking paragraph 1(b), the notion ‘undertaking performing any of the functions of performing any of the functions of generation or supply’ shall include generation or supply’ shall include ‘undertaking performing any of the ‘undertaking performing any of the functions of production and supply’ functions of production and supply’ within the meaning of Directive within the meaning of Directive 2009/73/EC i of the European 2009/73/EC of the European Parliament and of the Council 40 , and Parliament and of the Council 41 , and the terms ‘transmission system the terms ‘transmission system operator’ and ‘transmission system’ operator’ and ‘transmission system’ shall include ‘transmission system shall include ‘transmission system operator’ and ‘transmission system’ operator’ and ‘transmission system’ within the meaning of that Directive. within the meaning of that Directive. 4. The obligation set out in 4. The obligation set out in paragraph 1(a) shall be deemed to be paragraph 1(a) shall be deemed to be fulfilled in a situation where two or fulfilled in a situation where two or more undertakings which own more undertakings which own transmission systems have created a transmission systems have created a joint venture which acts as a joint venture which acts as a transmission system operator in two or transmission system operator in two or more Member States for the more Member States for the transmission systems concerned. No transmission systems concerned. No other undertaking may be part of the other undertaking may be part of the joint venture, unless it has been joint venture, unless it has been approved under Article 44 as an approved under Article 44 as an independent system operator or as an independent system operator or as an independent transmission operator for independent transmission operator for the purposes of Section 3. the purposes of Section 3.

40 Directive 2009/73/EC i of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas (OJ L

211, 14.8.2009, p. 94) 41 Directive 2009/73/EC i of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas (OJ L

211, 14.8.2009, p. 94)

ANNEX DGE 2B EN

• 5. 

  For the implementation of this 5. For the implementation of this

Article, where the person referred to in Article, where the person referred to in points (b), (c) and (d) of paragraph 1 is points (b), (c) and (d) of paragraph 1 is the Member State or another public the Member State or another public body, two separate public bodies body, two separate public bodies exercising control over a transmission exercising control over a transmission system operator or over a transmission system operator or over a transmission system on the one hand, and over an system on the one hand, and over an undertaking performing any of the undertaking performing any of the functions of generation or supply on functions of generation or supply on the other, shall be deemed not to be the the other, shall be deemed not to be the same person or persons. same person or persons. 6. Member States shall ensure that 6. Member States shall ensure that neither commercially sensitive neither commercially sensitive information referred to in Article 41 information referred to in Article 41 held by a transmission system operator held by a transmission system operator which was part of a vertically which was part of a vertically integrated undertaking, nor the staff of integrated undertaking, nor the staff of such a transmission system operator, is such a transmission system operator, is transferred to undertakings performing transferred to undertakings performing any of the functions of generation and any of the functions of generation and supply. supply. 7. Where on 3 September 2009, 7. Where on 3 September 2009, the the transmission system belongs to a transmission system belongs to a vertically integrated undertaking a vertically integrated undertaking a Member State may decide not to apply Member State may decide not to apply paragraph 1. paragraph 1. In such case, the Member State In such case, the Member State concerned shall either: concerned shall either: (a) designate an independent system (a) designate an independent system operator in accordance with Article 44; operator in accordance with Article 44 or ; or (b) comply with the provisions of (b) comply with the provisions of Section 3 . Section 3 .

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• 8. 

  Where, on 3 September 2009, 8. Where, on 3 September 2009, the transmission system belongs to a the transmission system belongs to a vertically integrated undertaking and vertically integrated undertaking and there are arrangements in place which there are arrangements in place which guarantee more effective independence guarantee more effective independence of the transmission system operator of the transmission system operator than the provisions of Section 3, a than the provisions of Section 3 , a Member State may decide not to apply Member State may decide not to apply paragraph 1. paragraph 1. 9. Before an undertaking is 9. Before an undertaking is approved and designated as a approved and designated as a transmission system operator under transmission system operator under paragraph 8 , it shall be certified paragraph 8 , it shall be certified according to the procedures laid down according to the procedures laid down in Article 52(4), (5), and (6), of this in Article 52(4), (5), and (6), of this Directive and in Article 48 of [recast of Directive and in Article 48 of [recast of Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by COM(2016)861 i/2], pursuant to which COM(2016)861 i/2], pursuant to which the Commission shall verify that the the Commission shall verify that the arrangements in place clearly arrangements in place clearly guarantee more effective independence guarantee more effective independence of the transmission system operator of the transmission system operator than the provisions of Section 3. than the provisions of Section 3. 10. Vertically integrated 10. Vertically integrated undertakings which own a undertakings which own a transmission system shall not in any transmission system shall not in any event be prevented from taking steps to event be prevented from taking steps to comply with paragraph 1. comply with paragraph 1. 11. Undertakings performing any of 11. Undertakings performing any of the functions of generation or supply the functions of generation or supply shall not in any event be able to shall not in any event be able to directly or indirectly take control over directly or indirectly take control over or exercise any right over unbundled or exercise any right over unbundled transmission system operators in transmission system operators in Member States which apply paragraph Member States which apply paragraph 1. 1.

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SECTION 2 INDEPENDENT SYSTEM OPERATOR

Article 44 Independent system operator 1. Where the transmission system 1. Where the transmission system belongs to a vertically integrated belongs to a vertically integrated undertaking on 3 September 2009, undertaking on 3 September 2009, Member States may decide not to Member States may decide not to apply Article 43 (1) and designate an apply Article 43 (1) and designate an independent system operator upon a independent system operator upon a proposal from the transmission system proposal from the transmission system owner. Such designation shall be owner. Such designation shall be subject to approval by the subject to approval by the Commission. Commission. 2. The Member State may approve 2. The Member State may approve and designate an independent system and designate an independent system operator only where: operator only where: (a) the candidate operator has (a) the candidate operator has demonstrated that it complies with the demonstrated that it complies with the requirements of Article 43 (1)(b), (c) requirements of Article 43 (1)(b), (c) and (d); and (d); (b) the candidate operator has (b) the candidate operator has demonstrated that it has at its disposal demonstrated that it has at its disposal the required financial, technical, the required financial, technical, physical and human resources to carry physical and human resources to carry out its tasks under Article 40 ; out its tasks under Article 40 ; (c) the candidate operator has (c) the candidate operator has undertaken to comply with a ten-year undertaken to comply with a ten-year network development plan monitored network development plan monitored by the regulatory authority; by the regulatory authority;

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(d) the transmission system owner (d) the transmission system owner has demonstrated its ability to comply has demonstrated its ability to comply with its obligations under paragraph 5. with its obligations under paragraph 5. To that end, it shall provide all the To that end, it shall provide all the draft contractual arrangements with the draft contractual arrangements with the candidate undertaking and any other candidate undertaking and any other relevant entity; and relevant entity; and (e) the candidate operator has (e) the candidate operator has demonstrated its ability to comply with demonstrated its ability to comply with its obligations under [recast of its obligations under [recast of Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by COM(2016)861 i/2] including the COM(2016)861 i/2] including the cooperation of transmission system cooperation of transmission system operators at European and regional operators at European and regional level. level. 3. Undertakings which have been 3. Undertakings which have been certified by the regulatory authority as certified by the regulatory authority as having complied with the requirements having complied with the requirements of Article 53 and paragraph 2 of this of Article 53 and paragraph 2 of this Article shall be approved and Article shall be approved and designated as independent system designated as independent system operators by Member States. The operators by Member States. The certification procedure in either Article certification procedure in either Article 52 of this Directive and Article 48 of 52 of this Directive and Article 48 of [recast of Regulation 714/2009 i as [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2] or in proposed by COM(2016)861 i/2] or in Article 53 of this Directive shall be Article 53 of this Directive shall be applicable. applicable.

ANNEX DGE 2B EN

• 4. 

  Each independent system 4. Each independent system operator shall be responsible for operator shall be responsible for granting and managing third-party granting and managing third-party access, including the collection of access, including the collection of access charges, congestion charges, access charges, congestion charges, and payments under the interand payments under the intertransmission system operator transmission system operator compensation mechanism in compensation mechanism in compliance with Article 46 of [recast compliance with Article 46 of [recast of Regulation 714/2009 i as proposed by of Regulation 714/2009 i as proposed by COM(2016)861 i/2], as well as for COM(2016)861 i/2], as well as for operating, maintaining and developing operating, maintaining and developing the transmission system, and for the transmission system, and for ensuring the long-term ability of the ensuring the long-term ability of the system to meet reasonable demand system to meet reasonable demand through investment planning. When through investment planning. When developing the transmission system, developing the transmission system, the independent system operator shall the independent system operator shall be responsible for planning (including be responsible for planning (including authorisation procedure), construction authorisation procedure), construction and commissioning of the new and commissioning of the new infrastructure. For this purpose, the infrastructure. For this purpose, the independent system operator shall act independent system operator shall act as a transmission system operator in as a transmission system operator in accordance with this Section . The accordance with this Section . The transmission system owner shall not be transmission system owner shall not be responsible for granting and managing responsible for granting and managing third-party access, nor for investment third-party access, nor for investment planning. planning. 5. Where an independent system 5. Where an independent system operator has been designated, the operator has been designated, the transmission system owner shall: transmission system owner shall:

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(a) provide all the relevant (a) provide all the relevant cooperation and support to the cooperation and support to the independent system operator for the independent system operator for the fulfilment of its tasks, including in fulfilment of its tasks, including in particular all relevant information; particular all relevant information; (b) finance the investments decided (b) finance the investments decided by the independent system operator by the independent system operator and approved by the regulatory and approved by the regulatory authority, or give its agreement to authority, or give its agreement to financing by any interested party financing by any interested party including the independent system including the independent system operator. The relevant financing operator. The relevant financing arrangements shall be subject to arrangements shall be subject to approval by the regulatory authority. approval by the regulatory authority. Prior to such approval, the regulatory Prior to such approval, the regulatory authority shall consult the transmission authority shall consult the transmission system owner together with the other system owner together with the other interested parties; interested parties; (c) provide for the coverage of (c) provide for the coverage of liability relating to the network assets, liability relating to the network assets, excluding the liability relating to the excluding the liability relating to the tasks of the independent system tasks of the independent system operator; and operator; and (d) provide guarantees to facilitate (d) provide guarantees to facilitate financing any network expansions with financing any network expansions with the exception of those investments the exception of those investments where, pursuant to point (b), it has where, pursuant to point (b), it has given its agreement to financing by given its agreement to financing by any interested party including the any interested party including the independent system operator. independent system operator.

ANNEX DGE 2B EN

• 6. 

  In close cooperation with the 6. In close cooperation with the regulatory authority, the relevant regulatory authority, the relevant national competition authority shall be national competition authority shall be granted all relevant powers to granted all relevant powers to effectively monitor compliance of the effectively monitor compliance of the transmission system owner with its transmission system owner with its obligations under paragraph 5. obligations under paragraph 5.

  Article 45 Unbundling of transmission system owners 1. A transmission system owner, 1. A transmission system owner, where an independent system operator where an independent system operator has been appointed, which is part of a has been appointed, which is part of a vertically integrated undertaking shall vertically integrated undertaking shall be independent at least in terms of its be independent at least in terms of its legal form, organisation and decision legal form, organisation and decision making from other activities not making from other activities not relating to transmission. relating to transmission. 2. In order to ensure the 2. In order to ensure the independence of the transmission independence of the transmission system owner referred to in paragraph system owner referred to in paragraph 1, the following minimum criteria shall 1, the following minimum criteria shall apply: apply: (a) persons responsible for the (a) persons responsible for the management of the transmission management of the transmission system owner shall not participate in system owner shall not participate in company structures of the integrated company structures of the integrated electricity undertaking responsible, electricity undertaking responsible, directly or indirectly, for the day-todirectly or indirectly, for the day-today operation of the generation, day operation of the generation, distribution and supply of electricity; distribution and supply of electricity;

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(b) appropriate measures shall be (b) appropriate measures shall be taken to ensure that the professional taken to ensure that the professional interests of persons responsible for the interests of persons responsible for the management of the transmission management of the transmission system owner are taken into account in system owner are taken into account in a manner that ensures that they are a manner that ensures that they are capable of acting independently; and capable of acting independently; and (c) the transmission system owner (c) the transmission system owner shall establish a compliance shall establish a compliance programme, which sets out measures programme, which sets out measures taken to ensure that discriminatory taken to ensure that discriminatory conduct is excluded, and ensure that conduct is excluded, and ensure that observance of it is adequately observance of it is adequately monitored. The compliance monitored. The compliance programme shall set out the specific programme shall set out the specific obligations of employees to meet those obligations of employees to meet those objectives. An annual report, setting objectives. An annual report, setting out the measures taken, shall be out the measures taken, shall be submitted by the person or body submitted by the person or body responsible for monitoring the responsible for monitoring the compliance programme to the compliance programme to the regulatory authority and shall be regulatory authority and shall be published. published.

Section 3 INDEPENDENT TRANSMISSION OPERATOR

Article 46 Assets, equipment, staff and identity 1. Transmission system operators 1. Transmission system operators shall be equipped with all human, shall be equipped with all human, technical, physical and financial technical, physical and financial resources necessary for fulfilling their resources necessary for fulfilling their obligations under this Directive and obligations under this Directive and carrying out the activity of electricity carrying out the activity of electricity transmission, in particular: transmission, in particular:

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(a) assets that are necessary for the (a) assets that are necessary for the activity of electricity transmission, activity of electricity transmission, including the transmission system, including the transmission system, shall be owned by the transmission shall be owned by the transmission system operator; system operator; (b) personnel, necessary for the (b) personnel, necessary for the activity of electricity transmission, activity of electricity transmission, including the performance of all including the performance of all corporate tasks, shall be employed by corporate tasks, shall be employed by the transmission system operator; the transmission system operator; (c) leasing of personnel and (c) leasing of personnel and rendering of services, to and from any rendering of services, to and from any other parts of the vertically integrated other parts of the vertically integrated undertaking shall be prohibited. A undertaking shall be prohibited. A transmission system operator may, transmission system operator may, however, render services to the however, render services to the vertically integrated undertaking as vertically integrated undertaking as long as: long as: the provision of those services does not the provision of those services does not discriminate between system users, is discriminate between system users, is available to all system users on the available to all system users on the same terms and conditions and does same terms and conditions and does not restrict, distort or prevent not restrict, distort or prevent competition in generation or supply; competition in generation or supply; and and – the terms and conditions of the – the terms and conditions of the provision of those services are provision of those services are approved by the regulatory authority; approved by the regulatory authority;

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(d) without prejudice to the (d) without prejudice to the decisions of the Supervisory Body decisions of the Supervisory Body under Article 49 , appropriate financial under Article 49 , appropriate financial resources for future investment resources for future investment projects and/or for the replacement of projects and/or for the replacement of existing assets shall be made available existing assets shall be made available to the transmission system operator in to the transmission system operator in due time by the vertically integrated due time by the vertically integrated undertaking following an appropriate undertaking following an appropriate request from the transmission system request from the transmission system operator. operator. 2. The activity of electricity 2. The activity of electricity transmission shall include at least the transmission shall include at least the following tasks in addition to those following tasks in addition to those listed in Article 40 : listed in Article 40 : (a) the representation of the (a) the representation of the transmission system operator and transmission system operator and contacts to third parties and the contacts to third parties and the regulatory authorities; regulatory authorities; (b) the representation of the (b) the representation of the transmission system operator within transmission system operator within the European Network of Transmission the European Network of Transmission System Operators for Electricity System Operators for Electricity (ENTSO for Electricity); (ENTSO for Electricity); (c) granting and managing third(c) granting and managing thirdparty access on a non-discriminatory party access on a non-discriminatory basis between system users or classes basis between system users or classes of system users; of system users; (d) the collection of all the (d) the collection of all the transmission system related charges transmission system related charges including access charges, and ancillary including access charges, energy for services charges; losses and ancillary services charges; (e) the operation, maintenance and (e) the operation, maintenance and development of a secure, efficient and development of a secure, efficient and economic transmission system; economic transmission system;

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(f) investment planning ensuring (f) investment planning ensuring the long-term ability of the system to the long-term ability of the system to meet reasonable demand and meet reasonable demand and guaranteeing security of supply; guaranteeing security of supply; (g) the setting up of appropriate (g) the setting up of appropriate joint ventures, including with one or joint ventures, including with one or more transmission system operators, more transmission system operators, power exchanges, and the other power exchanges, and the other relevant actors pursuing the objectives relevant actors pursuing the objectives to develop the creation of regional to develop the creation of regional markets or to facilitate the markets or to facilitate the liberalisation process; and liberalisation process; and (h) all corporate services, including (h) all corporate services, including legal services, accountancy and IT legal services, accountancy and IT services. services. 3. Transmission system operators 3. Transmission system operators shall be organised in a legal form as shall be organised in a legal form as referred to in Article 1 of Directive referred to in Article 1 of Directive 2009/101/EC i of the European 2009/101/EC of the European Parliament and of the Council 42 . Parliament and of the Council 43 . 4. The transmission system 4. The transmission system operator shall not, in its corporate operator shall not, in its corporate identity, communication, branding and identity, communication, branding and premises, create confusion in respect premises, create confusion in respect of the separate identity of the vertically of the separate identity of the vertically integrated undertaking or any part integrated undertaking or any part thereof. thereof.

42 Directive 2009/101/EC i of the European Parliament and of the Council of 16 September 2009 on coordination of safeguards which, for the protection of the

interests of members and third parties, are required by Member States of companies within the meaning of the second paragraph of Article 48 of the Treaty, with a view to making such safeguards equivalent (OJ L 258, 1.10.2009, p. 11).

43 Directive 2009/101/EC i of the European Parliament and of the Council of 16 September 2009 on coordination of safeguards which, for the protection of the interests of members and third parties, are required by Member States of companies within the meaning of the second paragraph of Article 48 of the Treaty, with a view to making such safeguards equivalent (OJ L 258, 1.10.2009, p. 11).

ANNEX DGE 2B EN

• 5. 

  The transmission system 5. The transmission system operator shall not share IT systems or operator shall not share IT systems or equipment, physical premises and equipment, physical premises and security access systems with any part security access systems with any part of the vertically integrated undertaking of the vertically integrated undertaking nor use the same consultants or nor use the same consultants or external contractors for IT systems or external contractors for IT systems or equipment, and security access equipment, and security access systems. systems. 6. The accounts of transmission 6. The accounts of transmission system operators shall be audited by an system operators shall be audited by an auditor other than the one auditing the auditor other than the one auditing the vertically integrated undertaking or vertically integrated undertaking or any part thereof. any part thereof.

  Article 47 Independence of the transmission system operator 1. Without prejudice to the 1. Without prejudice to the decisions of the Supervisory Body decisions of the Supervisory Body under Article 49 , the transmission under Article 49 , the transmission system operator shall have: system operator shall have: (a) effective decision-making rights, (a) effective decision-making rights, independent from the vertically independent from the vertically integrated undertaking, with respect to integrated undertaking, with respect to assets necessary to operate, maintain or assets necessary to operate, maintain or develop the transmission system; and develop the transmission system; and (b) the power to raise money on the (b) the power to raise money on the capital market in particular through capital market in particular through borrowing and capital increase. borrowing and capital increase. 2. The transmission system 2. The transmission system operator shall at all times act so as to operator shall at all times act so as to ensure it has the resources it needs in ensure it has the resources it needs in order to carry out the activity of order to carry out the activity of transmission properly and efficiently transmission properly and efficiently and develop and maintain an efficient, and develop and maintain an efficient, secure and economic transmission secure and economic transmission system. system.

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• 3. 

  The vertically integrated AM 143 3. Subsidiaries of the vertically undertaking and its subsidiaries 3. Subsidiaries of the vertically integrated undertaking [] performing performing functions of generation or integrated undertakings performing functions of generation or supply shall supply shall not have any direct or functions of generation or supply shall not have any direct or indirect indirect shareholding in the not have any direct or indirect shareholding in the transmission transmission system operator. The shareholding in the transmission system operator. The transmission transmission system operator shall system operator. The transmission system operator shall neither have any neither have any direct or indirect system operator shall neither have any direct or indirect shareholding in any shareholding in any subsidiary of the direct or indirect shareholding in any subsidiary of the vertically integrated vertically integrated undertaking subsidiary of the vertically integrated undertaking performing functions of performing functions of generation or undertaking performing functions of generation or supply, nor receive supply, nor receive dividends or any generation or supply, nor receive dividends or any other financial benefit other financial benefit from that dividends or any other financial benefit from that subsidiary. subsidiary. from that subsidiary.

• 4. 

  The overall management 4. The overall management structure and the corporate statutes of structure and the corporate statutes of the transmission system operator shall the transmission system operator shall ensure effective independence of the ensure effective independence of the transmission system operator in transmission system operator in compliance with this Section. The compliance with this Section . The vertically integrated undertaking shall vertically integrated undertaking shall not determine, directly or indirectly, not determine, directly or indirectly, the competitive behaviour of the the competitive behaviour of the transmission system operator in transmission system operator in relation to the day to day activities of relation to the day to day activities of the transmission system operator and the transmission system operator and management of the network, or in management of the network, or in relation to activities necessary for the relation to activities necessary for the preparation of the ten-year network preparation of the ten-year network development plan developed pursuant development plan developed pursuant to Article 51 . to Article 51 .

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• 5. 

  In fulfilling their tasks in 5. In fulfilling their tasks in Article

Article 40 and Article 46 (2) of this 40 and Article 46 (2) of this Directive,

Directive, and in complying with and in complying with obligations set obligations set out in Articles 14, ,16, out in Articles 14, 16, 17 and 47 of [of 17 and 47 of [of recast of Regulation recast of Regulation 714/2009 i as 714/2009 as proposed by proposed by COM(2016)861 i/2], COM(2016)861 i/2], transmission transmission system operators shall not system operators shall not discriminate discriminate against different persons against different persons or entities and or entities and shall not restrict, distort shall not restrict, distort or prevent or prevent competition in generation or competition in generation or supply. supply. 6. Any commercial and financial 6. Any commercial and financial relations between the vertically relations between the vertically integrated undertaking and the integrated undertaking and the transmission system operator, transmission system operator, including loans from the transmission including loans from the transmission system operator to the vertically system operator to the vertically integrated undertaking, shall comply integrated undertaking, shall comply with market conditions. The with market conditions. The transmission system operator shall transmission system operator shall keep detailed records of such keep detailed records of such commercial and financial relations and commercial and financial relations and make them available to the regulatory make them available to the regulatory authority upon request. authority upon request. 7. The transmission system 7. The transmission system operator shall submit for approval by operator shall submit for approval by the regulatory authority all commercial the regulatory authority all commercial and financial agreements with the and financial agreements with the vertically integrated undertaking. vertically integrated undertaking. 8. The transmission system 8. The transmission system operator shall inform the regulatory operator shall inform the regulatory authority of the financial resources, authority of the financial resources, referred to in Article 46 (1)(d), referred to in Article 46 (1)(d), available for future investment projects available for future investment projects and/or for the replacement of existing and/or for the replacement of existing assets. assets.

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• 9. 

  The vertically integrated 9. The vertically integrated undertaking shall refrain from any undertaking shall refrain from any action impeding or prejudicing the action impeding or prejudicing the transmission system operator from transmission system operator from complying with its obligations in this complying with its obligations in this Chapter and shall not require the Chapter and shall not require the transmission system operator to seek transmission system operator to seek permission from the vertically permission from the vertically integrated undertaking in fulfilling integrated undertaking in fulfilling those obligations. those obligations. 10. An undertaking which has been 10. An undertaking which has been certified by the regulatory authority as certified by the regulatory authority as being in compliance with the being in compliance with the requirements of this Chapter shall be requirements of this Chapter shall be approved and designated as a approved and designated as a transmission system operator by the transmission system operator by the Member State concerned. The Member State concerned. The certification procedure in either Article certification procedure in either Article 52 of this Directive and [Article 48 of 52 of this Directive and [Article 48 of of Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by COM(2016)861 i/2] or in Article 53 of COM(2016)861 i/2] or in Article 53 of this Directive shall apply. this Directive shall apply.

  Article 48 Independence of the staff and the management of the transmission system operator 1. Decisions regarding the 1. Decisions regarding the appointment and renewal, working appointment and renewal, working conditions including remuneration, and conditions including remuneration, and termination of the term of office of the termination of the term of office of the persons responsible for the persons responsible for the management and/or members of the management and/or members of the administrative bodies of the administrative bodies of the transmission system operator shall be transmission system operator shall be taken by the Supervisory Body of the taken by the Supervisory Body of the transmission system operator transmission system operator appointed in accordance with Article appointed in accordance with Article 49. 49.

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• 2. 

  The identity and the conditions 2. The identity and the conditions governing the term, the duration and governing the term, the duration and the termination of office of the persons the termination of office of the persons nominated by the Supervisory Body nominated by the Supervisory Body for appointment or renewal as persons for appointment or renewal as persons responsible for the executive responsible for the executive management and/or as members of the management and/or as members of the administrative bodies of the administrative bodies of the transmission system operator, and the transmission system operator, and the reasons for any proposed decision reasons for any proposed decision terminating such term of office, shall terminating such term of office, shall be notified to the regulatory authority. be notified to the regulatory authority. Those conditions and the decisions Those conditions and the decisions referred to in paragraph 1 shall become referred to in paragraph 1 shall become binding only if the regulatory authority binding only if the regulatory authority has raised no objections within three has raised no objections within three weeks of notification. weeks of notification. The regulatory authority may object to The regulatory authority may object to the decisions referred to in paragraph 1 the decisions referred to in paragraph 1 where: where: (a) doubts arise as to the (a) doubts arise as to the professional independence of a professional independence of a nominated person responsible for the nominated person responsible for the management and/or member of the management and/or member of the administrative bodies; or administrative bodies; or (b) in the case of premature (b) in the case of premature termination of a term of office, doubts termination of a term of office, doubts exist regarding the justification of such exist regarding the justification of such premature termination. premature termination.

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• 3. 

  No professional position or 3. No professional position or responsibility, interest or business responsibility, interest or business relationship, directly or indirectly, with relationship, directly or indirectly, with the vertically integrated undertaking or the vertically integrated undertaking or any part of it or its controlling any part of it or its controlling shareholders other than the shareholders other than the transmission system operator shall be transmission system operator shall be exercised for a period of three years exercised for a period of three years before the appointment of the persons before the appointment of the persons responsible for the management and/or responsible for the management and/or members of the administrative bodies members of the administrative bodies of the transmission system operator of the transmission system operator who are subject to this paragraph. who are subject to this paragraph. 4. The persons responsible for the 4. The persons responsible for the management and/or members of the management and/or members of the administrative bodies, and employees administrative bodies, and employees of the transmission system operator of the transmission system operator shall have no other professional shall have no other professional position or responsibility, interest or position or responsibility, interest or business relationship, directly or business relationship, directly or indirectly, with any other part of the indirectly, with any other part of the vertically integrated undertaking or vertically integrated undertaking or with its controlling shareholders. with its controlling shareholders. 5. The persons responsible for the 5. The persons responsible for the management and/or members of the management and/or members of the administrative bodies, and employees administrative bodies, and employees of the transmission system operator of the transmission system operator shall hold no interest in or receive any shall hold no interest in or receive any financial benefit, directly or indirectly, financial benefit, directly or indirectly, from any part of the vertically from any part of the vertically integrated undertaking other than the integrated undertaking other than the transmission system operator. Their transmission system operator. Their remuneration shall not depend on remuneration shall not depend on activities or results of the vertically activities or results of the vertically integrated undertaking other than those integrated undertaking other than those of the transmission system operator. of the transmission system operator.

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• 6. 

  Effective rights of appeal to the 6. Effective rights of appeal to the regulatory authority shall be regulatory authority shall be guaranteed for any complaints by the guaranteed for any complaints by the persons responsible for the persons responsible for the management and/or members of the management and/or members of the administrative bodies of the administrative bodies of the transmission system operator against transmission system operator against premature terminations of their term of premature terminations of their term of office. office. 7. After termination of their term 7. After termination of their term of office in the transmission system of office in the transmission system operator, the persons responsible for its operator, the persons responsible for its management and/or members of its management and/or members of its administrative bodies shall have no administrative bodies shall have no professional position or responsibility, professional position or responsibility, interest or business relationship with interest or business relationship with any part of the vertically integrated any part of the vertically integrated undertaking other than the undertaking other than the transmission system operator, or with transmission system operator, or with its controlling shareholders for a period its controlling shareholders for a period of not less than four years. of not less than four years. 8. Paragraph 3 shall apply to the 8. Paragraph 3 shall apply to the majority of the persons responsible for majority of the persons responsible for the management and/or members of the management and/or members of the administrative bodies of the the administrative bodies of the transmission system operator. transmission system operator. The persons responsible for the The persons responsible for the management and/or members of the management and/or members of the administrative bodies of the administrative bodies of the transmission system operator who are transmission system operator who are not subject to paragraph 3 shall have not subject to paragraph 3 shall have exercised no management or other exercised no management or other relevant activity in the vertically relevant activity in the vertically integrated undertaking for a period of integrated undertaking for a period of at least six months before their at least six months before their appointment. appointment.

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The first subparagraph of this The first subparagraph of this paragraph and paragraphs 4 to 7 shall paragraph and paragraphs 4 to 7 shall be applicable to all the persons be applicable to all the persons belonging to the executive belonging to the executive management and to those directly management and to those directly reporting to them on matters related to reporting to them on matters related to the operation, maintenance or the operation, maintenance or development of the network. development of the network.

Article 49 Supervisory Body 1. The transmission system 1. The transmission system operator shall have a Supervisory Body operator shall have a Supervisory Body which shall be in charge of taking which shall be in charge of taking decisions which may have a significant decisions which may have a significant impact on the value of the assets of the impact on the value of the assets of the shareholders within the transmission shareholders within the transmission system operator, in particular decisions system operator, in particular decisions regarding the approval of the annual regarding the approval of the annual and longer-term financial plans, the and longer-term financial plans, the level of indebtedness of the level of indebtedness of the transmission system operator and the transmission system operator and the amount of dividends distributed to amount of dividends distributed to shareholders. The decisions falling shareholders. The decisions falling under the remit of the Supervisory under the remit of the Supervisory Body shall exclude those that are Body shall exclude those that are related to the day to day activities of related to the day to day activities of the transmission system operator and the transmission system operator and management of the network, and to management of the network, and to activities necessary for the preparation activities necessary for the preparation of the ten-year network development of the ten-year network development plan developed pursuant to Article 51. plan developed pursuant to Article 51.

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• 2. 

  The Supervisory Body shall be 2. The Supervisory Body shall be composed of members representing the composed of members representing the vertically integrated undertaking, vertically integrated undertaking, members representing third party members representing third party shareholders and, where the relevant shareholders and, where the relevant legislation of a Member State so legislation of a Member State so provides, members representing other provides, members representing other interested parties such as employees of interested parties such as employees of the transmission system operator. the transmission system operator. 3. The first subparagraph of 3. The first subparagraph of Article Article 48(2) and Article 48(3) to (7) 48(2) and Article 48(3) to (7) shall shall apply to at least half of the apply to at least half of the members of members of the Supervisory Body the Supervisory Body minus one. minus one.

Point (b) of the second subparagraph Point (b) of the second subparagraph of Article 48(2) shall apply to all the of Article 48(2) shall apply to all the members of the Supervisory Body. members of the Supervisory Body.

Article 50 Compliance programme and compliance officer 1. Member States shall ensure that 1. Member States shall ensure that transmission system operators establish transmission system operators establish and implement a compliance and implement a compliance programme which sets out the programme which sets out the measures taken in order to ensure that measures taken in order to ensure that discriminatory conduct is excluded, discriminatory conduct is excluded, and ensure that the compliance with and ensure that the compliance with that programme is adequately that programme is adequately monitored. The compliance monitored. The compliance programme shall set out the specific programme shall set out the specific obligations of employees to meet those obligations of employees to meet those objectives. It shall be subject to objectives. It shall be subject to approval by the regulatory authority. approval by the regulatory authority. Without prejudice to the powers of the Without prejudice to the powers of the national regulator, compliance with the national regulator, compliance with the program shall be independently program shall be independently monitored by a compliance officer. monitored by a compliance officer.

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• 2. 

  The compliance officer shall be 2. The compliance officer shall be appointed by the Supervisory Body, appointed by the Supervisory Body, subject to the approval by the subject to the approval by the regulatory authority. The regulatory regulatory authority. The regulatory authority may refuse the approval of authority may refuse the approval of the compliance officer only for reasons the compliance officer only for reasons of lack of independence or professional of lack of independence or professional capacity. The compliance officer may capacity. The compliance officer may be a natural or legal person. be a natural or legal person. Article Article 48(2) to (8) shall apply to the 48(2) to (8) shall apply to the compliance officer. compliance officer. 3. The compliance officer shall be 3. The compliance officer shall be in charge of: in charge of: (a) monitoring the implementation (a) monitoring the implementation of the compliance programme; of the compliance programme; (b) elaborating an annual report, (b) elaborating an annual report, setting out the measures taken in order setting out the measures taken in order to implement the compliance to implement the compliance programme and submitting it to the programme and submitting it to the regulatory authority; regulatory authority; (c) reporting to the Supervisory (c) reporting to the Supervisory Body and issuing recommendations on Body and issuing recommendations on the compliance programme and its the compliance programme and its implementation; implementation; (d) notifying the regulatory (d) notifying the regulatory authority on any substantial breaches authority on any substantial breaches with regard to the implementation of with regard to the implementation of the compliance programme; and the compliance programme; and (e) reporting to the regulatory (e) reporting to the regulatory authority on any commercial and authority on any commercial and financial relations between the financial relations between the vertically integrated undertaking and vertically integrated undertaking and the transmission system operator. the transmission system operator.

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• 4. 

  The compliance officer shall 4. The compliance officer shall submit the proposed decisions on the submit the proposed decisions on the investment plan or on individual investment plan or on individual investments in the network to the investments in the network to the regulatory authority. This shall occur regulatory authority. This shall occur at the latest when the management at the latest when the management and/or the competent administrative and/or the competent administrative body of the transmission system body of the transmission system operator submits them to the operator submits them to the Supervisory Body. Supervisory Body. 5. Where the vertically integrated 5. Where the vertically integrated undertaking, in the general assembly or undertaking, in the general assembly or through the vote of the members of the through the vote of the members of the Supervisory Body it has appointed, has Supervisory Body it has appointed, has prevented the adoption of a decision prevented the adoption of a decision with the effect of preventing or with the effect of preventing or delaying investments, which under the delaying investments, which under the ten-year network development plan ten-year network development plan was to be executed in the following was to be executed in the following three years, the compliance officer three years, the compliance officer shall report this to the regulatory shall report this to the regulatory authority, which then shall act in authority, which then shall act in accordance with Article 51. accordance with Article 51. 6. The conditions governing the 6. The conditions governing the mandate or the employment conditions mandate or the employment conditions of the compliance officer, including of the compliance officer, including the duration of its mandate, shall be the duration of its mandate, shall be subject to approval by the regulatory subject to approval by the regulatory authority. Those conditions shall authority. Those conditions shall ensure the independence of the ensure the independence of the compliance officer, including by compliance officer, including by providing him with all the resources providing him with all the resources necessary for fulfilling his duties. necessary for fulfilling his duties. During his mandate, the compliance During his mandate, the compliance officer shall have no other professional officer shall have no other professional

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position, responsibility or interest, position, responsibility or interest, directly or indirectly, in or with any directly or indirectly, in or with any part of the vertically integrated part of the vertically integrated undertaking or with its controlling undertaking or with its controlling shareholders. shareholders. 7. The compliance officer shall 7. The compliance officer shall report regularly, either orally or in report regularly, either orally or in writing, to the regulatory authority and writing, to the regulatory authority and shall have the right to report regularly, shall have the right to report regularly, either orally or in writing, to the either orally or in writing, to the Supervisory Body of the transmission Supervisory Body of the transmission system operator. system operator. 8. The compliance officer may 8. The compliance officer may attend all meetings of the management attend all meetings of the management or administrative bodies of the or administrative bodies of the transmission system operator, and transmission system operator, and those of the Supervisory Body and the those of the Supervisory Body and the general assembly. The compliance general assembly. The compliance officer shall attend all meetings that officer shall attend all meetings that address the following matters: address the following matters: (a) conditions for access to the (a) conditions for access to the network, as defined in [recast of network, as defined in [recast of Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by COM(2016)861 i/2], in particular COM(2016)861 i/2], in particular regarding tariffs, third party access regarding tariffs, third party access services, capacity allocation and services, capacity allocation and congestion management, transparency, congestion management, transparency, ancillary services and secondary ancillary services and secondary markets; markets; (b) projects undertaken in order to (b) projects undertaken in order to operate, maintain and develop the operate, maintain and develop the transmission system, including transmission system, including interconnection and connection interconnection and connection investments; investments;

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(c) energy purchases or sales (c) energy purchases or sales necessary for the operation of the necessary for the operation of the transmission system. transmission system. 9. The compliance officer shall 9. The compliance officer shall monitor the compliance of the monitor the compliance of the transmission system operator with transmission system operator with Article 41. Article 41. 10. The compliance officer shall 10. The compliance officer shall have access to all relevant data and to have access to all relevant data and to the offices of the transmission system the offices of the transmission system operator and to all the information operator and to all the information necessary for the fulfilment of his task. necessary for the fulfilment of his task. 11. After prior approval by the 11. After prior approval by the regulatory authority, the Supervisory regulatory authority, the Supervisory Body may dismiss the compliance Body may dismiss the compliance officer. It shall dismiss the compliance officer. It shall dismiss the compliance officer for reasons of lack of officer for reasons of lack of independence or professional capacity independence or professional capacity upon request of the regulatory upon request of the regulatory authority. authority. 12. The compliance officer shall 12. The compliance officer shall have access to the offices of the have access to the offices of the transmission system operator without transmission system operator without prior announcement. prior announcement.

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Article 51 Network development and powers to make investment decisions 1. At least every two years, AM 144 1. At least every two years, transmission system operators shall 1. At least every two years, transmission system operators shall submit to the regulatory authority a transmission system operators shall submit to the regulatory authority a ten-year network development plan submit to the regulatory authority a ten-year network development plan based on existing and forecast supply ten-year network development plan based on existing and forecast supply and demand after having consulted all based on existing and forecast supply and demand after having consulted all the relevant stakeholders. That network and demand after having consulted all the relevant stakeholders. That network development plan shall contain the relevant stakeholders. That network development plan shall contain efficient measures in order to development plan shall contain efficient measures in order to guarantee the adequacy of the system efficient measures in order to guarantee the adequacy of the system and the security of supply. guarantee the adequacy of the system and the security of supply.

and the security of supply. The regulatory authority shall review the ten-year network development plan and approve it. Before its approval, it may require the transmission system operator to amend its ten-year network development plan. The transmission system operator shall publish the ten-year network development plan on its website.

• 2. 

  The ten-year network 2. The ten-year network development plan shall in particular: development plan shall in particular: (a) indicate to market participants (a) indicate to market participants the main transmission infrastructure the main transmission infrastructure that needs to be built or upgraded over that needs to be built or upgraded over the next ten years; the next ten years; (b) contain all the investments (b) contain all the investments already decided and identify new already decided and identify new investments which have to be executed investments which have to be executed in the next three years; and in the next three years; and

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(c) provide for a time frame for all (c) provide for a time frame for all investment projects. investment projects. 3. When elaborating the ten-year AM 145 3. When elaborating the ten-year network development plan, the 3. When elaborating the ten-year network development plan, the transmission system operator shall network development plan, the transmission system operator shall make reasonable assumptions about transmission system operator shall make reasonable assumptions about the evolution of the generation, supply, fully take into account the potential of the evolution of the generation, supply, energy storage, consumption and the use of demand response, energy energy storage, consumption and exchanges with other countries, taking storage facilities or other resources as exchanges with other countries, taking into account investment plans for an alternative to system expansion in into account investment plans for regional and Union -wide networks. addition to expected consumption and regional and Union -wide networks.

trade with other countries and investment plans for regional and Union wide networks.

• 4. 

  The regulatory authority shall 4. The regulatory authority shall consult all actual or potential system consult all actual or potential system users on the ten-year network users on the ten-year network development plan in an open and development plan in an open and transparent manner. Persons or transparent manner. Persons or undertakings claiming to be potential undertakings claiming to be potential system users may be required to system users may be required to substantiate such claims. The substantiate such claims. The regulatory authority shall publish the regulatory authority shall publish the result of the consultation process, in result of the consultation process, in particular possible needs for particular possible needs for investments. investments. 5. The regulatory authority shall AM 146 5. The regulatory authority shall examine whether the ten-year network 5. The regulatory authority shall examine whether the ten-year network development plan covers all examine whether the ten-year network development plan covers all investment needs identified during the development plan covers all investment needs identified during the consultation process, and whether it is investment needs identified during the consultation process, and whether it is consistent with the non-binding Union consultation process, and whether it is consistent with the non-binding Union -wide ten-year network development consistent with the non-binding Union -wide ten-year network development plan (Union -wide network wide ten-year network development plan ( Union -wide network development plan) referred to in plan Union wide network development development plan) referred to in

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[Article 27(1)(b) of recast of plan) referred to in [Article 27(1)(b) of [Article 27(1)(b) of recast of

Regulation 714/2009 i as proposed by recast of Regulation 714/2009 i as Regulation 714/2009 i as proposed by

COM(2016)861 i/2]. If any doubt arises proposed by COM(2016)861 i/2]. If any COM(2016)861 i/2]. If any doubt arises as to the consistency with the Union - doubt arises as to the consistency with as to the consistency with the Union - wide network development plan, the the Union wide network development wide network development plan, the regulatory authority shall consult the plan or with the National Energy and regulatory authority shall consult the Agency. The regulatory authority may Climate Plans submitted in Agency. The regulatory authority may require the transmission system accordance with Regulation (EU) … require the transmission system operator to amend its ten-year network [Governance Regulation], the operator to amend its ten-year network development plan. regulatory authority shall consult the development plan.

Agency. The regulatory authority may require the transmission system operator to amend its ten-year network development plan.

• 6. 

  The regulatory authority shall 6. The regulatory authority shall monitor and evaluate the monitor and evaluate the implementation of the ten-year implementation of the ten-year network development plan. network development plan.

  AM 147 (new) The regulatory authority shall monitor and evaluate the development of overall system flexibility and report annually on progress.

• 7. 

  In circumstances where the 7. In circumstances where the transmission system operator, other transmission system operator, other than for overriding reasons beyond its than for overriding reasons beyond its control, does not execute an control, does not execute an investment, which, under the ten-year investment, which, under the ten-year network development plan, was to be network development plan, was to be executed in the following three years, executed in the following three years, Member States shall ensure that the Member States shall ensure that the regulatory authority is required to take regulatory authority is required to take at least one of the following measures at least one of the following measures to ensure that the investment in to ensure that the investment in question is made if such investment is question is made if such investment is

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still relevant on the basis of the most still relevant on the basis of the most recent ten-year network development recent ten-year network development plan: plan: (a) to require the transmission (a) to require the transmission system operator to execute the system operator to execute the investments in question; investments in question; (b) to organise a tender procedure (b) to organise a tender procedure open to any investors for the open to any investors for the investment in question; or investment in question; or (c) to oblige the transmission (c) to oblige the transmission system operator to accept a capital system operator to accept a capital increase to finance the necessary increase to finance the necessary investments and allow independent investments and allow independent investors to participate in the capital. investors to participate in the capital. Where the regulatory authority has Where the regulatory authority has made use of its powers under point (b) made use of its powers under point (b) of the first subparagraph, it may oblige of the first subparagraph, it may oblige the transmission system operator to the transmission system operator to agree to one or more of the following: agree to one or more of the following: – financing by any third party; – financing by any third party; – construction by any third party; – construction by any third party; – building the new assets – building the new assets concerned itself; concerned itself; – operating the new asset – operating the new asset concerned itself. concerned itself. The transmission system operator shall The transmission system operator shall provide the investors with all provide the investors with all information needed to realise the information needed to realise the investment, shall connect new assets to investment, shall connect new assets to the transmission network and shall the transmission network and shall generally make its best efforts to generally make its best efforts to facilitate the implementation of the facilitate the implementation of the investment project. investment project.

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The relevant financial arrangements The relevant financial arrangements shall be subject to approval by the shall be subject to approval by the regulatory authority. regulatory authority. 8. Where the regulatory authority 8. Where the regulatory authority has made use of its powers under the has made use of its powers under the first subparagraph of paragraph 7, the first subparagraph of paragraph 7, the relevant tariff regulations shall cover relevant tariff regulations shall cover the costs of the investments in the costs of the investments in question. question.

Section 4 Designation and certification of transmission system operators

Article 52 Designation and certification of transmission system operators 1. Before an undertaking is 1. Before an undertaking is approved and designated as approved and designated as transmission system operator, it shall transmission system operator, it shall be certified according to the be certified according to the procedures laid down in paragraphs 4, procedures laid down in paragraphs 4, 5, 6 of this Article and in Article 48 of 5, 6 of this Article and in Article 48 of [recast of Regulation 714/2009 i as [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2]. proposed by COM(2016)861 i/2]. 2. Undertakings which have been 2. Undertakings which have been certified by the national regulatory certified by the [] regulatory authority authority as having complied with the as having complied with the requirements of Article 43 , pursuant to requirements of Article 43 , pursuant to the certification procedure below, shall the certification procedure below, shall be approved and designated as be approved and designated as transmission system operators by transmission system operators by Member States. The designation of Member States. The designation of transmission system operators shall be transmission system operators shall be notified to the Commission and notified to the Commission and published in the Official Journal of the published in the Official Journal of the European Union. European Union.

ANNEX DGE 2B EN

• 3. 

  Transmission system operators 3. Transmission system operators shall notify to the regulatory authority shall notify to the regulatory authority any planned transaction which may any planned transaction which may require a reassessment of their require a reassessment of their compliance with the requirements of compliance with the requirements of Article 43. Article 43. 4. Regulatory authorities shall 4. Regulatory authorities shall monitor the continuing compliance of monitor the continuing compliance of transmission system operators with the transmission system operators with the requirements of Article 43. They shall requirements of Article 43. They shall open a certification procedure to open a certification procedure to ensure such compliance: ensure such compliance: (a) upon notification by the (a) upon notification by the transmission system operator pursuant transmission system operator pursuant to paragraph 3; to paragraph 3; (b) on their own initiative where (b) on their own initiative where they have knowledge that a planned they have knowledge that a planned change in rights or influence over change in rights or influence over transmission system owners or transmission system owners or transmission system operators may transmission system operators may lead to an infringement of Article 43, lead to an infringement of Article 43, or where they have reason to believe or where they have reason to believe that such an infringement may have that such an infringement may have occurred; or occurred; or (c) upon a reasoned request from (c) upon a reasoned request from the Commission. the Commission. 5. The regulatory authorities shall 5. The regulatory authorities shall adopt a decision on the certification of adopt a decision on the certification of a transmission system operator within a transmission system operator within a period of four months from the date a period of four months from the date of the notification by the transmission of the notification by the transmission system operator or from the date of the system operator or from the date of the Commission request. After expiry of Commission request. After expiry of that period, the certification shall be that period, the certification shall be deemed to be granted. The explicit or deemed to be granted. The explicit or

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tacit decision of the regulatory tacit decision of the regulatory authority shall become effective only authority shall become effective only after the conclusion of the procedure after the conclusion of the procedure set out in paragraph 6. set out in paragraph 6. 6. The explicit or tacit decision on 6. The explicit or tacit decision on the certification of a transmission the certification of a transmission system operator shall be notified system operator shall be notified without delay to the Commission by without delay to the Commission by the regulatory authority, together with the regulatory authority, together with all the relevant information with all the relevant information with respect to that decision. The respect to that decision. The Commission shall act in accordance Commission shall act in accordance with the procedure laid down in with the procedure laid down in [Article 48 of recast of Regulation [Article 48 of recast of Regulation 714/2009 i as proposed by 714/2009 as proposed by COM(2016)861 i/2]. COM(2016)861 i/2]. 7. The regulatory authorities and 7. The regulatory authorities and the Commission may request from the Commission may request from transmission system operators and transmission system operators and undertakings performing any of the undertakings performing any of the functions of generation or supply any functions of generation or supply any information relevant for the fulfilment information relevant for the fulfilment of their tasks under this Article. of their tasks under this Article. 8. Regulatory authorities and the 8. Regulatory authorities and the Commission shall preserve the Commission shall preserve the confidentiality of commercially confidentiality of commercially sensitive information. sensitive information.

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Article 53 Certification in relation to third countries 1. Where certification is requested 1. Where certification is requested by a transmission system owner or a by a transmission system owner or a transmission system operator which is transmission system operator which is controlled by a person or persons from controlled by a person or persons from a third country or third countries, the a third country or third countries, the regulatory authority shall notify the regulatory authority shall notify the Commission. Commission. The regulatory authority shall also The regulatory authority shall also notify to the Commission without notify to the Commission without delay any circumstances that would delay any circumstances that would result in a person or persons from a result in a person or persons from a third country or third countries third country or third countries acquiring control of a transmission acquiring control of a transmission system or a transmission system system or a transmission system operator. operator. 2. The transmission system 2. The transmission system operator shall notify to the regulatory operator shall notify to the regulatory authority any circumstances that would authority any circumstances that would result in a person or persons from a result in a person or persons from a third country or third countries third country or third countries acquiring control of the transmission acquiring control of the transmission system or the transmission system system or the transmission system operator. operator. 3. The regulatory authority shall 3. The regulatory authority shall adopt a draft decision on the adopt a draft decision on the certification of a transmission system certification of a transmission system operator within four months from the operator within four months from the date of notification by the transmission date of notification by the transmission system operator. It shall refuse the system operator. It shall refuse the certification if it has not been certification if it has not been demonstrated: demonstrated:

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(a) that the entity concerned (a) that the entity concerned complies with the requirements of complies with the requirements of Article 43; and Article 43; and (b) to the regulatory authority or to (b) to the regulatory authority or to another competent authority designated another competent authority designated by the Member State that granting by the Member State that granting certification will not put at risk the certification will not put at risk the security of energy supply of the security of energy supply of the Member State and the Union. In Member State and the Union . In considering that question the considering that question the regulatory authority or other competent regulatory authority or other competent authority so designated shall take into authority so designated shall take into account: account: – the rights and obligations of the – the rights and obligations of the Union with respect to that third Union with respect to that third country arising under international law, country arising under international law, including any agreement concluded including any agreement concluded with one or more third countries to with one or more third countries to which the Union is a party and which which the Union is a party and which addresses the issues of security of addresses the issues of security of energy supply; energy supply; – the rights and obligations of the – the rights and obligations of the Member State with respect to that third Member State with respect to that third country arising under agreements country arising under agreements concluded with it, insofar as they are in concluded with it, insofar as they are in compliance with Union law; and compliance with Union law; and – other specific facts and – other specific facts and circumstances of the case and the third circumstances of the case and the third country concerned. country concerned. 4. The regulatory authority shall 4. The regulatory authority shall notify the decision to the Commission notify the decision to the Commission without delay, together with all the without delay, together with all the relevant information with respect to relevant information with respect to that decision. that decision.

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• 5. 

  Member States shall provide for 5. Member States shall provide for the regulatory authority or the the regulatory authority or the designated competent authority designated competent authority referred to in paragraph 3(b), before referred to in paragraph 3(b), before the regulatory authority adopts a the regulatory authority adopts a decision on the certification, to request decision on the certification, to request an opinion from the Commission on an opinion from the Commission on whether: whether: (a) the entity concerned complies (a) the entity concerned complies with the requirements of Article 43; with the requirements of Article 43; and and (b) granting certification will not (b) granting certification will not put at risk the security of energy put at risk the security of energy supply to the Union. supply to the Union. 6. The Commission shall examine 6. The Commission shall examine the request referred to in paragraph 5 the request referred to in paragraph 5 as soon as it is received. Within a as soon as it is received. Within a period of two months after receiving period of two months after receiving the request, it shall deliver its opinion the request, it shall deliver its opinion to the national regulatory authority or, to the [] regulatory authority or, if the if the request was made by the request was made by the designated designated competent authority, to that competent authority, to that authority. authority.

In preparing the opinion, the In preparing the opinion, the

Commission may request the views of Commission may request the views of the Agency, the Member State the Agency, the Member State concerned, and interested parties. In concerned, and interested parties. In the event that the Commission makes the event that the Commission makes such a request, the two-month period such a request, the two-month period shall be extended by two months. shall be extended by two months.

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In the absence of an opinion by the In the absence of an opinion by the

Commission within the period referred Commission within the period referred to in the first and second to in the first and second subparagraphs, the Commission shall subparagraphs, the Commission shall be deemed not to raise objections to be deemed not to raise objections to the decision of the regulatory the decision of the regulatory authority. authority. 7. When assessing whether the 7. When assessing whether the control by a person or persons from a control by a person or persons from a third country or third countries will put third country or third countries will put at risk the security of energy supply to at risk the security of energy supply to the Union, the Commission shall take the Union , the Commission shall take into account: into account: (a) the specific facts of the case and (a) the specific facts of the case and the third country or third countries the third country or third countries concerned; and concerned; and (b) the rights and obligations of the (b) the rights and obligations of the European Union with respect to that European Union with respect to that third country or third countries arising third country or third countries arising under international law, including an under international law, including an agreement concluded with one or more agreement concluded with one or more third countries to which the Union is a third countries to which the Union is a party and which addresses the issues of party and which addresses the issues of security of supply. security of supply. 8. The national regulatory 8. The [] regulatory authority shall, authority shall, within a period of two within a period of two months after the months after the expiry of the period expiry of the period referred to in referred to in paragraph 6, adopt its paragraph 6, adopt its final decision on final decision on the certification. In the certification. In adopting its final adopting its final decision the national decision the [] regulatory authority regulatory authority shall take utmost shall take utmost account of the account of the Commission’s opinion. Commission’s opinion. In any event In any event Member States shall have Member States shall have the right to the right to refuse certification where refuse certification where granting granting certification puts at risk the certification puts at risk the Member

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Member State’s security of energy State’s security of energy supply or the supply or the security of energy supply security of energy supply of another of another Member State. Where the Member State. Where the Member Member State has designated another State has designated another competent competent authority to assess authority to assess paragraph 3(b), it paragraph 3(b), it may require the may require the [] regulatory authority national regulatory authority to adopt to adopt its final decision in its final decision in accordance with accordance with the assessment of that the assessment of that competent competent authority. The [] regulatory authority. The national regulatory authority’s final decision and the authority’s final decision and the Commission’s opinion shall be Commission’s opinion shall be published together. Where the final published together. Where the final decision diverges from the decision diverges from the Commission’s opinion, the Member Commission’s opinion, the Member State concerned shall provide and State concerned shall provide and publish, together with that decision, the publish, together with that decision, the reasoning underlying such decision. reasoning underlying such decision.

• 9. 

  Nothing in this Article shall 9. Nothing in this Article shall affect the right of Member States to affect the right of Member States to exercise, in compliance with Union exercise, in compliance with Union law, national legal controls to protect law, national legal controls to protect legitimate public security interests. legitimate public security interests. 10. This Article, with exception of 10. This Article, with exception of paragraph 3(a), shall also apply to paragraph 3(a), shall also apply to Member States which are subject to a Member States which are subject to a derogation under Article 66. derogation under Article 66.

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Article 54 Ownership of energy storage facilities [] by transmission system operators 1. Transmission system operators AM 148 1. Transmission system operators shall not be allowed to own, manage or 1. Transmission system operators shall not be allowed to own, develop, operate energy storage facilities and shall not be allowed to own, manage or manage or operate energy storage shall not own directly or indirectly operate energy storage facilities and facilities []. control assets that provide ancillary shall not own directly or indirectly services. control assets that provide ancillary

services, unless those facilities or assets are an integral part of the transmission system and where the national regulatory authority has granted its approval.

• 2. 

  By way of derogation from AM 149 2. By way of derogation from paragraph 1, Member States may allow 2. By way of derogation from paragraph 1, Member States may allow transmission system operators to own, paragraph 1, Member States may allow transmission system operators to own, manage or operate storage facilities or transmission system operators to own, develop, manage or operate energy assets providing non-frequency manage or operate storage facilities or storage facilities which are fully ancillary services if the following assets providing non-frequency integrated network components and conditions are fulfilled: ancillary services if all of the the regulatory authority has granted

  following conditions are fulfilled: its approval or [], if all of the following conditions are fulfilled: (-a) such facilities are necessary for the transmission system operators to fulfil their obligations under this Directive for the efficient, reliable and secure operation of the transmission system and they are not used to provide balancing services and to buy or sell electricity to the wholesale markets, including balancing markets;

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(a) other parties, following an open AM 150 (a) other parties, following an open, and transparent tendering procedure, (a) other parties, following an open [] transparent and non-discriminatory have not expressed their interest to and transparent tendering procedure, tendering procedure, subject to review own, control, manage or operate such subject to review by the national and approval by the regulatory facilities offering storage and/or nonregulatory authority, have not authority [] have not been awarded frequency ancillary services to the expressed their interest to own, control, with a right to own, develop, control, transmission system operator; manage or operate such facilities manage or operate such facilities []

offering storage and/or non-frequency Regulatory authorities may draw up

ancillary services to the transmission guidelines or procurement clauses to

system operator or cannot deliver help transmission system operators

these services at a reasonable cost and in ensuring a fair tendering

in a timely manner; procedure; and

(b) such facilities or non-frequency AM 151 []

ancillary services are necessary for the (b) such facilities or non-frequency

transmission system operators to fulfil ancillary services are necessary for the

their obligations under this Directive transmission system operators to fulfil

for the efficient, reliable and secure their obligations under this Directive

operation of the transmission system for the efficient, reliable and secure

and they are not used to sell electricity operation of the transmission system,

to the market; and in particular as an alternative to

investments in new grid lines, and

they are not used to sell electricity to

the market; and

(c) the regulatory authority has (c) the regulatory authority has

assessed the necessity of such assessed the necessity of such

derogation taking into account the derogation, has carried out an exconditions

under points (a) and (b) of ante review of the applicability of a

this paragraph and has granted its tendering procedure, including the

approval. conditions, [] and has granted its

approval.

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AM 152 2a. (new) National regulatory authorities may draw up guidelines or procurement clauses to aid transmission system operators in ensuring a fair tendering procedure.

• 3. 

  The decision to grant derogation [] shall be notified to the Agency and the

Commission along with relevant information about the request and the reasons for granting the derogation.

• 4. 

  The transmission system AM 153 4. Except for fully integrated operator shall perform at regular 4. Member States shall perform at network components, the [] intervals or at least every five years a regular intervals or at least every five regulatory authorities shall perform public consultation for the required years a public consultation for the at regular intervals or at least every storage services in order to assess the required storage services in order to five years a public consultation for the potential interest of market parties to assess the potential interest of market required energy storage [] facilities in invest in such facilities and terminate parties to invest in such facilities. order to assess the potential interest of its own storage activities in case third Where the public consultation market parties to invest in such parties can provide the service in a indicates that third parties are able to facilities []. Where the public cost-effective manner. own, develop, operate or manage such consultation, as assessed by the

  facilities, Member States shall ensure regulatory authority, indicates that that the activities of transmission third parties are able to own, system operators in this regard are develop, operate or manage such phased out. facilities in a cost-effective manner, regulatory authorities shall ensure that transmission system operators' activities in this regard are phasedout within 24 months. As part of the conditions for this procedure, regulatory authorities may allow the transmission system operators to receive reasonable compensation, in particular the residual value of the

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investment they made into energy storage facilities. 4a. The decision to grant derogation shall be notified to the Agency and the Commission along with relevant information about the request and the reasons for granting the derogation. 4b. Paragraph 4 shall not apply for the usual depreciation period of new battery storage facilities with a final investment decision until 2024.

Section 5 Unbundling and transparency of accounts

Article 55 Right of access to accounts 1. Member States or any competent 1. Member States or any competent authority they designate, including the authority they designate, including the regulatory authorities referred to in regulatory authorities referred to in Article 57, shall, insofar as necessary Article 57, shall, insofar as necessary to carry out their functions, have right to carry out their functions, have right of access to the accounts of electricity of access to the accounts of electricity undertakings as set out in Article 56. undertakings as set out in Article 56. 2. Member States and any 2. Member States and any designated competent authority, designated competent authority, including the regulatory authorities, including the regulatory authorities, shall preserve the confidentiality of shall preserve the confidentiality of commercially sensitive information. commercially sensitive information. Member States may provide for the Member States may provide for the disclosure of such information where disclosure of such information where this is necessary in order for the this is necessary in order for the competent authorities to carry out their competent authorities to carry out their functions. functions.

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Article 56 Unbundling of accounts 1. Member States shall take the 1. Member States shall take the necessary steps to ensure that the necessary steps to ensure that the accounts of electricity undertakings are accounts of electricity undertakings are kept in accordance with paragraphs 2 kept in accordance with paragraphs 2 and 3. and 3. 2. Electricity undertakings, 2. Electricity undertakings, whatever whatever their system of ownership or their system of ownership or legal legal form, shall draw up, submit to form, shall draw up, submit to audit audit and publish their annual accounts and publish their annual accounts in in accordance with the rules of national accordance with the rules of national law concerning the annual accounts of law concerning the annual accounts of limited liability companies adopted limited liability companies adopted pursuant to Directive 2013/34 i/EU of pursuant to Directive 2013/34 i/EU of the European Parliament and of the the European Parliament and of the Council 44 . Council 45 . Undertakings which are not legally Undertakings which are not legally obliged to publish their annual obliged to publish their annual accounts shall keep a copy of these at accounts shall keep a copy of these at the disposal of the public in their head the disposal of the public in their head office. office.

44 Directive 2013/34 i/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements

and related reports of certain types of undertakings, amending Directive 2006/43/EC i of the European Parliament and of the Council and repealing Council Directives 78/660/EEC i and 83/349/EEC (OJ L 182, 29.6.2013, p. 19)

45 Directive 2013/34 i/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC i of the European Parliament and of the Council and repealing Council Directives 78/660/EEC i and 83/349/EEC (OJ L 182, 29.6.2013, p. 19)

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• 3. 

  Electricity undertakings shall, in 3. Electricity undertakings shall, in their internal accounting, keep separate their internal accounting, keep separate accounts for each of their transmission accounts for each of their transmission and distribution activities as they and distribution activities as they would be required to do if the activities would be required to do if the activities in question were carried out by in question were carried out by separate undertakings, with a view to separate undertakings, with a view to avoiding discrimination, crossavoiding discrimination, crosssubsidisation and distortion of subsidisation and distortion of competition. They shall also keep competition. They shall also keep accounts, which may be consolidated, accounts, which may be consolidated, for other electricity activities not for other electricity activities not relating to transmission or distribution. relating to transmission or distribution. Revenue from ownership of the Revenue from ownership of the transmission or distribution system transmission or distribution system shall be specified in the accounts. shall be specified in the accounts. Where appropriate, they shall keep Where appropriate, they shall keep consolidated accounts for other, nonconsolidated accounts for other, nonelectricity activities. The internal electricity activities. The internal accounts shall include a balance sheet accounts shall include a balance sheet and a profit and loss account for each and a profit and loss account for each activity. activity. 4. The audit referred to in 4. The audit referred to in paragraph 2 shall, in particular, verify paragraph 2 shall, in particular, verify that the obligation to avoid that the obligation to avoid discrimination and cross-subsidies discrimination and cross-subsidies referred to in paragraph 3 is respected. referred to in paragraph 3 is respected.

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CHAPTER VII NATIONAL REGULATORY AUTHORITIES

Article 57

Designation and independence of regulatory authorities

• 1. 

  Each Member State shall 1. Each Member State shall

designate a single national regulatory designate a single [] regulatory

authority at national level. authority at national level.

• 2. 

  Paragraph 1 shall be without 2. Paragraph 1 shall be without

prejudice to the designation of other prejudice to the designation of other

regulatory authorities at regional level regulatory authorities at regional level

within Member States, provided that within Member States, provided that

there is one senior representative for there is one senior representative for

representation and contact purposes at representation and contact purposes at

Union level within the Board of Union level within the Board of

Regulators of the Agency in Regulators of the Agency in

accordance with Article 22(1) of accordance with Article 22(1) of

[recast of Regulation 713/2009 i as [recast of Regulation 713/2009 i as

proposed by COM(2016)863 i/2]. proposed by COM(2016)863 i/2].

• 3. 

  By way of derogation from 3. By way of derogation from

paragraph 1 , a Member State may paragraph 1 , a Member State may

designate regulatory authorities for designate regulatory authorities for

small systems on a geographically small systems on a geographically

separate region whose consumption, in separate region whose consumption, in

2008, accounted for less than 3 % of 2008, accounted for less than 3 % of

the total consumption of the Member the total consumption of the Member

State of which it is part. This State of which it is part. This

derogation shall be without prejudice derogation shall be without prejudice

to the appointment of one senior to the appointment of one senior

representative for representation and representative for representation and

contact purposes at Union level within contact purposes at Union level within

the Board of Regulators of the Agency the Board of Regulators of the Agency

in compliance with [Article 22 (1) of in compliance with [Article 22 (1) of

recast of Regulation 713/2009 i as recast of Regulation 713/2009 i as

proposed by COM(2016)863 i/2]. proposed by COM(2016)863 i/2].

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• 4. 

  Member States shall guarantee 4. Member States shall guarantee the independence of the regulatory the independence of the regulatory authority and shall ensure that it authority and shall ensure that it exercises its powers impartially and exercises its powers impartially and transparently. For this purpose, transparently. For this purpose, Member States shall ensure that, when Member States shall ensure that, when carrying out the regulatory tasks carrying out the regulatory tasks conferred upon it by this Directive and conferred upon it by this Directive and related legislation, the regulatory related legislation, the regulatory authority: authority: (a) is legally distinct and (a) is legally distinct and functionally independent from any functionally independent from any other public or private entity; other public or private entity; (b) ensures that its staff and the (b) ensures that its staff and the persons responsible for its persons responsible for its management: management: (i) act independently from any (i) act independently from any market interest; and market interest; and (ii) do not seek or take direct (ii) do not seek or take direct instructions from any government or instructions from any government or other public or private entity when other public or private entity when carrying out the regulatory tasks. This carrying out the regulatory tasks. This requirement is without prejudice to requirement is without prejudice to close cooperation, as appropriate, with close cooperation, as appropriate, with other relevant national authorities or to other relevant national authorities or to general policy guidelines issued by the general policy guidelines issued by the government not related to the government not related to the regulatory powers and duties under regulatory powers and duties under Article 59. Article 59. 5. In order to protect the 5. In order to protect the independence of the regulatory independence of the regulatory authority, Member States shall in authority, Member States shall in particular ensure that: particular ensure that:

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(a) the regulatory authority can take AM 154 (a) the regulatory authority can take autonomous decisions, independently (a) the regulatory authority can take autonomous decisions, independently from any political body, and has autonomous decisions, independently from any political body, and has separate annual budget allocations, from any political body; separate annual budget allocations, with autonomy in the implementation with autonomy in the implementation of the allocated budget, and adequate of the allocated budget, and adequate human and financial resources to carry human and financial resources to carry out its duties; and out its duties; and (b) the members of the board of the (b) the members of the board of the regulatory authority or, in the absence regulatory authority or, in the absence of a board, the regulatory authority’s of a board, the regulatory authority’s top management are appointed for a top management are appointed for a fixed term of five up to seven years, fixed term of five up to seven years, renewable once; renewable once;

AM 155 (ba) (new) the regulatory authority draws up a draft budget covering the regulatory tasks conferred upon it by this Directive and by related legislative acts, in order to provide the regulatory authority with the human and financial resources it needs to carry out its duties and powers in an effective and efficient manner; AM 156 (bb) (new) the ex-post control of a regulatory authority’s annual accounts is performed by an independent auditor;

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(c) the members of the board of the (c) the members of the board of the regulatory authority or, in the absence regulatory authority or, in the absence of a board, the regulatory authority's of a board, the regulatory authority's top management are appointed based top management are appointed based on objective, transparent and published on objective, transparent and published criteria, in an independent and criteria, in an independent and impartial procedure, which ensures that impartial procedure, which ensures that the candidates have the necessary skills the candidates have the necessary skills and experience for any relevant and experience for any relevant position in the national regulatory position in the []regulatory authority []; authority and that parliamentary hearings are held;

(d) conflict of interest provisions are (d) conflict of interest provisions are in place and confidentiality obligations in place and confidentiality obligations extend beyond the end of the mandate extend beyond the end of the mandate of the members of the board of the of the members of the board of the regulatory authority or, in the absence regulatory authority or, in the absence of a board, the regulatory authority's of a board, the regulatory authority's top management in the national top management in the []regulatory regulatory authority; authority; (e) the members of the board of the (e) the members of the board of the regulatory authority or, in the absence regulatory authority or, in the absence of a board, the regulatory authority's of a board, the regulatory authority's top management can be dismissed only top management can be dismissed only based on transparent criteria in place. based on transparent criteria in place. In regard to point (b) of the first In regard to point (b) of the first subparagraph, Member States shall subparagraph, Member States shall ensure an appropriate rotation scheme ensure an appropriate rotation scheme for the board or the top management. for the board or the top management. The members of the board or, in the The members of the board or, in the absence of a board, members of the top absence of a board, members of the top management may be relieved from management may be relieved from office during their term only if they no office during their term only if they no longer fulfil the conditions set out in longer fulfil the conditions set out in this Article or have been guilty of this Article or have been guilty of misconduct under national law. misconduct under national law.

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AM 157 5a. (new) By … [three years after the date of entry into force of this Directive] and every three years thereafter, the Commission shall present a report to the European Parliament and the Council on national authorities´ compliance with the principle of independence, pursuant to this Article. Article 58 General objectives of the regulatory authority

In carrying out the regulatory tasks In carrying out the regulatory tasks specified in this Directive, the specified in this Directive, the regulatory authority shall take all regulatory authority shall take all reasonable measures in pursuit of the reasonable measures in pursuit of the following objectives within the following objectives within the framework of their duties and powers framework of their duties and powers as laid down in Article 59, in close as laid down in Article 59, in close consultation with other relevant consultation with other relevant national authorities including national authorities including competition authorities and authorities competition authorities and authorities, from neighbouring countries, including including regulatory authorities, third countries as appropriate, and from neighbouring countries, including without prejudice to their third countries as appropriate, and competencies: without prejudice to their

competencies:

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(a) promoting, in close cooperation (a) promoting, in close cooperation with the Agency, regulatory authorities with the Agency, regulatory authorities of other Member States and the of other Member States and the Commission, a competitive, flexible, Commission, a competitive, flexible, secure and environmentally sustainable secure and environmentally sustainable internal market in electricity within the internal market in electricity within the Union, and effective market opening Union , and effective market opening for all customers and suppliers in the for all customers and suppliers in the Union and ensuring appropriate Union and ensuring appropriate conditions for the effective and reliable conditions for the effective and reliable operation of electricity networks, operation of electricity networks, taking into account long-term taking into account long-term objectives; objectives; (b) developing competitive and (b) developing competitive and properly functioning regional crossproperly functioning regional crossborder, markets within the Union in border, markets within the Union in view of the achievement of the view of the achievement of the objectives referred to in point (a); objectives referred to in point (a); (c) eliminating restrictions on trade (c) eliminating restrictions on trade in electricity between Member States, in electricity between Member States, including developing appropriate including developing appropriate cross-border transmission capacities to cross-border transmission capacities to meet demand and enhancing the meet demand and enhancing the integration of national markets which integration of national markets which may facilitate electricity flows across may facilitate electricity flows across the Union; the Union; (d) helping to achieve, in the most (d) helping to achieve, in the most cost-effective way, the development of cost-effective way, the development of secure, reliable and efficient nonsecure, reliable and efficient nondiscriminatory systems that are discriminatory systems that are consumer oriented, and promoting consumer oriented, and promoting system adequacy and, in line with system adequacy and, in line with general energy policy objectives, general energy policy objectives, energy efficiency as well as the energy efficiency as well as the integration of large and small-scale integration of large and small-scale

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production of electricity from production of electricity from renewable energy sources and renewable energy sources and distributed generation in both distributed generation in both transmission and distribution networks transmission and distribution networks and in facilitating their operation in and in facilitating their operation in relation to other energy networks of relation to other energy networks of gas or heat; gas or heat; (e) facilitating access to the network (e) facilitating access to the network for new generation capacity and energy for new generation capacity and energy storage facilities, in particular storage facilities, in particular removing barriers that could prevent removing barriers that could prevent access for new market entrants and of access for new market entrants and of electricity from renewable energy electricity from renewable energy sources; sources; (f) ensuring that system operators (f) ensuring that system operators and system users are granted and system users are granted appropriate incentives, in both the appropriate incentives, in both the short and the long term, to increase short and the long term, to increase efficiencies, especially energy efficiencies, especially energy efficiency, in system performance and efficiency, in system performance and foster market integration; foster market integration; (g) ensuring that customers benefit AM 158 (g) ensuring that customers benefit through the efficient functioning of (g) ensuring that customers benefit through the efficient functioning of their national market, promoting through the efficient functioning of their national market, promoting effective competition and helping to their national market and their effective competition and helping to ensure consumer protection; participation therein is not restricted, ensure consumer protection;

promoting effective competition and to guarantee consumer protection in close cooperation with relevant consumer protection authorities;

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(h) helping to achieve high (h) helping to achieve high standards of universal and public standards of universal and public service in electricity supply, service in electricity supply, contributing to the protection of contributing to the protection of vulnerable customers and contributing vulnerable customers and contributing to the compatibility of necessary data to the compatibility of necessary data exchange processes for customer exchange processes for customer switching. switching.

Article 59 Duties and powers of the regulatory authority 1. The regulatory authority shall 1. The regulatory authority shall have the following duties: have the following duties: (a) fixing or approving, in (a) fixing or approving, in accordance with transparent criteria, accordance with transparent criteria, transmission or distribution tariffs and transmission or distribution tariffs [] their methodologies; or their methodologies; (b) ensuring compliance of (b) ensuring compliance of transmission and distribution system transmission and distribution system operators and, where relevant, system operators and, where relevant, system owners, as well as of any electricity owners, as well as of any electricity undertakings and other market undertakings and other market participants, with their obligations participants, with their obligations under this Directive, the [recast of under this Directive , the [recast of Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by COM(2016)861 i/2], the network codes COM(2016)861 i/2], the network codes adopted pursuant to Article 54 and adopted pursuant to Article 54 and Article 55 of [recast of Regulation Article 55 of [recast of Regulation 714/2009 i as proposed by 714/2009 as proposed by COM(2016)861 i/2], and the guidelines COM(2016)861 i/2], and the guidelines adopted pursuant to Article 57 of adopted pursuant to Article 57 of [recast of Regulation 714/2009 i as [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2 and proposed by COM(2016)861 i/2and other relevant Union legislation, other relevant Union legislation, including as regards cross-border including as regards cross-border issues; issues;

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(c) approving products and (c) approving products and procurement process for non-frequency procurement process for non-frequency ancillary services; ancillary services; (d) implementing the network codes (d) implementing the network codes and Guidelines adopted pursuant to and Guidelines adopted pursuant to Articles 54 to 57 of the [recast of Articles 54 to 57 of the [recast of Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by COM(2016)861 i/2] through national COM(2016)861 i/2] through national measures or, where so required, measures or, where so required, coordinated regional or Union-wide coordinated regional or Union-wide measures ; measures ; (e) cooperating in regard to cross(e) cooperating in regard to crossborder issues with the regulatory border issues with the regulatory authority or authorities of the Member authority or authorities of the Member States concerned and with the Agency, States concerned and with the Agency , in particular through participation in in particular through participation in the work of the Agency's Board of the work of the Agency's Board of Regulators pursuant to Article 22 of Regulators pursuant to Article 22 of [recast of Regulation 713/2009 i as [recast of Regulation 713/2009 i as proposed by COM(2016)863 i/2]; proposed by COM(2016)863 i/2]; (f) complying with, and (f) complying with, and implementing, any relevant legally implementing, any relevant legally binding decisions of the Agency and of binding decisions of the Agency and of the Commission; the Commission; (g) ensuring that interconnector (g) ensuring that transmission capacities are made available to the system operators, make available utmost extent pursuant to Article 14 of interconnector capacities [] to the [recast of Regulation 714/2009 i as utmost extent pursuant to Article 14 of proposed by COM(2016)861 i/2]; [recast of Regulation 714/2009 i as

proposed by COM(2016)861 i/2];

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(h) reporting annually on its activity (h) reporting annually on its activity and the fulfilment of its duties to the and the fulfilment of its duties to the relevant authorities of the Member relevant authorities of the Member States, the Agency and the States, the Agency and the Commission. Such reports shall cover Commission. Such reports shall cover the steps taken and the results obtained the steps taken and the results obtained as regards each of the tasks listed in as regards each of the tasks listed in this Article; this Article; (i) ensuring that there are no cross(i) ensuring that there are no crosssubsidies between transmission, subsidies between transmission, distribution, and supply activities; distribution, and supply activities; (j) monitoring investment plans of (j) monitoring investment plans of the transmission system operators, and the transmission system operators, and providing in its annual report an providing in its annual report an assessment of the investment plans of assessment of the investment plans of the transmission system operators as the transmission system operators as regards their consistency with the regards their consistency with the Union -wide network development Union -wide network development plan referred to in Article 27(1)(b) of plan referred to in Article 27(1)(b) of the [recast of Regulation 714/2009 i as the [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2]; such proposed by COM(2016)861 i/2]; such assessment may include assessment may include recommendations to amend those recommendations to amend those investment plans; investment plans; (k) measuring the performance of (k) [] assessing the performance of the transmission system operators and the transmission system operators and distribution system operators in distribution system operators in relation to the development of a smart relation to the development of a smart grid that promotes energy efficiency grid that promotes energy efficiency and the integration of energy from and the integration of energy from renewable sources based on a limited renewable sources [], and publish a set of Union-wide indicators, and national report every [] 4 years, publish a national report every 2 years, including recommendations []; including recommendations for improvement where necessary;

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(l) setting or approving standards (l) setting or approving standards and requirements for quality of service and requirements for quality of service and supply or contributing thereto and supply or contributing thereto together with other competent together with other competent authorities and monitoring compliance authorities and monitoring compliance with and reviewing the past with and reviewing the past performance of network security and performance of network security and reliability rules; reliability rules ; (m) monitoring the level of (m) monitoring the level of transparency, including of wholesale transparency, including of wholesale prices, and ensuring compliance of prices, and ensuring compliance of electricity undertakings with electricity undertakings with transparency obligations; transparency obligations; (n) monitoring the level and AM 159 (n) monitoring the level and effectiveness of market opening and (n) monitoring the level and effectiveness of market opening and competition at wholesale and retail effectiveness of market opening and competition at wholesale and retail levels, including on electricity competition at wholesale and retail levels, including on electricity exchanges, prices for household levels, including on electricity exchanges, prices for household customers including prepayment exchanges, prices for household customers including prepayment systems, switching rates, disconnection customers including prepayment systems, switching rates, disconnection rates, charges for and the execution of systems, impact of dynamic price rates, charges for and the execution of maintenance services, and complaints contracts and of the use of smart maintenance services, and complaints by household customers, as well as any meter, switching rates, disconnection by household customers, as well as any distortion or restriction of competition, rates, charges for and the execution of distortion or restriction of competition, including providing any relevant maintenance services, the relationship including providing any relevant information, and bringing any relevant between household and wholesale information, and bringing any relevant cases to the relevant competition prices, the evolution of grid tariffs cases to the relevant competition authorities; and levies and complaints by authorities;

household customers, as well as any distortion or restriction of competition, including providing any relevant information, and bringing any relevant cases to the relevant competition authorities;

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(o) monitoring the occurrence of AM 160 (o) monitoring the occurrence of restrictive contractual practices, (o) monitoring the occurrence of restrictive contractual practices, including exclusivity clauses which restrictive contractual practices, including exclusivity clauses which may prevent large non-household including exclusivity clauses which may prevent large non-household customers from contracting may prevent customers from customers from contracting simultaneously with more than one contracting simultaneously with more simultaneously with more than one supplier or restrict their choice to do than one supplier or restrict their supplier or restrict their choice to do so, and, where appropriate, informing choice to do so, and, where so, and, where appropriate, informing the national competition authorities of appropriate, informing the national the national competition authorities of such practices; competition authorities of such such practices;

practices; AM 161 (oa) (new) monitoring and reporting on consumer participation, and the availability and potential of flexibility, in the energy system;

(p) monitoring the time taken by (p) monitoring the time taken by transmission and distribution system transmission and distribution system operators to make connections and operators to make connections and repairs; repairs; (q) helping to ensure, together with AM 162 (q) helping to ensure, together with other relevant authorities, that the (q) helping to ensure, together with other relevant authorities, that the consumer protection measures are other relevant authorities, that the new consumer protection measures are effective and enforced; and existing consumer protection effective and enforced;

measures, including for active customers, are effective and enforced; monitoring the removal of unjustified obstacles and restrictions to the development of self-consumption and local energy communities;

(r) publishing recommendations, at (r) publishing recommendations, at least annually, in relation to least annually, in relation to compliance of supply prices with compliance of supply prices with Article 5 , and providing these to the Article 5 , and providing these to the competition authorities, where competition authorities, where appropriate; appropriate;

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(s) ensuring access to customer AM 163 (s) ensuring access to customer consumption data, the provision, for (s) ensuring non-discriminatory consumption data, the provision, for optional use, of an easily access to customer consumption data, optional use, of an easily understandable harmonised format at the provision, for optional use, of an understandable harmonised format at national level for consumption data, easily understandable harmonised national level for consumption data, and prompt access for all customers to format at national level for and prompt access for all customers to such data pursuant to Articles 23 and consumption data, and prompt access such data pursuant to Articles 23 and 24 ; for all customers to such data pursuant 24 ;

to Articles 23 and 24 ;

(t) monitoring the implementation (t) monitoring the implementation of rules relating to the roles and of rules relating to the roles and responsibilities of transmission system responsibilities of transmission system operators, distribution system operators, distribution system operators, suppliers and customers and operators, suppliers and customers and other market parties pursuant to [recast other market parties pursuant to [recast of Regulation 714/2009 i as proposed by of Regulation 714/2009 i as proposed by COM(2016)861 i/2] COM(2016)861 i/2; (u) monitoring investment in (u) monitoring investment in generation and storage capacities in generation and storage capacities in relation to security of supply; relation to security of supply; (v) monitoring technical (v) monitoring technical cooperation between Union and thirdcooperation between Union and thirdcountry transmission system operators; country transmission system operators; (w) contributing to the compatibility (w) contributing to the compatibility of data exchange processes for the of data exchange processes for the most important market processes at most important market processes at regional level. regional level.

(x) monitoring the availability of AM 164 (x) monitoring the availability of comparison websites, including (x) monitoring the availability of comparison tools [] that fulfil the

comparison tools that fulfil the criteria comparison tools, including criteria set out in Article 14 [].

set out in Article 14 and Annex I. comparison websites, apps and other interactive means, that fulfil the

criteria set out in Article 14.

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(xa) monitoring the development of energy communities established in accordance with Article 16.

• 2. 

  Where a Member State has so 2. Where a Member State has so provided, the monitoring duties set out provided, the monitoring duties set out in paragraph 1 may be carried out by in paragraph 1 may be carried out by other authorities than the regulatory other authorities than the regulatory authority. In such a case, the authority. In such a case, the information resulting from such information resulting from such monitoring shall be made available to monitoring shall be made available to the regulatory authority as soon as the regulatory authority as soon as possible. possible. While preserving their independence, While preserving their independence, without prejudice to their own specific without prejudice to their own specific competencies and consistent with the competencies and consistent with the principles of better regulation, the principles of better regulation, the regulatory authority shall, as regulatory authority shall, as appropriate, consult transmission appropriate, consult transmission system operators and, as appropriate, system operators and, as appropriate, closely cooperate with other relevant closely cooperate with other relevant national authorities when carrying out national authorities when carrying out the duties set out in paragraph 1. the duties set out in paragraph 1. Any approvals given by a regulatory Any approvals given by a regulatory authority or the Agency under this authority or the Agency under this Directive are without prejudice to any Directive are without prejudice to any duly justified future use of its powers duly justified future use of its powers by the regulatory authority under this by the regulatory authority under this Article or to any penalties imposed by Article or to any penalties imposed by other relevant authorities or the other relevant authorities or the Commission. Commission.

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• 3. 

  Member States shall ensure that 3. Member States shall ensure that regulatory authorities are granted the regulatory authorities are granted the powers enabling them to carry out the powers enabling them to carry out the duties referred to in this Article in an duties referred to in this Article in an efficient and expeditious manner. For efficient and expeditious manner. For this purpose, the regulatory authority this purpose, the regulatory authority shall have at least the following shall have at least the following powers: powers: (a) to issue binding decisions on (a) to issue binding decisions on electricity undertakings; electricity undertakings; (b) to carry out investigations into (b) to carry out investigations into the functioning of the electricity the functioning of the electricity markets, and to decide upon and markets, and to decide upon and impose any necessary and impose any necessary and proportionate measures to promote proportionate measures to promote effective competition and ensure the effective competition and ensure the proper functioning of the market. proper functioning of the market. Where appropriate, the regulatory Where appropriate, the regulatory authority shall also have the power to authority shall also have the power to cooperate with the national cooperate with the national competition authority and the financial competition authority and the financial market regulators or the Commission market regulators or the Commission in conducting an investigation relating in conducting an investigation relating to competition law; to competition law; (c) to require any information from (c) to require any information from electricity undertakings relevant for the electricity undertakings relevant for the fulfilment of its tasks, including the fulfilment of its tasks, including the justification for any refusal to grant justification for any refusal to grant third-party access, and any information third-party access, and any information on measures necessary to reinforce the on measures necessary to reinforce the network; network;

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(d) to impose effective, AM 165 (d) to impose effective, proportionate and dissuasive penalties (d) at its own initiative or upon proportionate and dissuasive penalties on electricity undertakings not request from the Agency to enforce its on electricity undertakings not complying with their obligations under binding decisions, to impose effective, complying with their obligations under this Directive or any relevant legally proportionate and dissuasive penalties this Directive or any relevant legally binding decisions of the regulatory on electricity undertakings, ENTSO of binding decisions of the regulatory authority or of the Agency, or to Electricity or regional coordination authority or of the Agency, or to propose that a competent court impose centres, not complying with their propose that a competent court impose such penalties. This shall include the obligations under this Directive, such penalties. This shall include the power to impose or propose the Regulation (EU) ... [recast of power to impose or propose the imposition of penalties of up to 10 % Regulation 714/2009 i as proposed by imposition of penalties of up to 10 % of the annual turnover of the COM (2016) 861 i/2], or any relevant of the annual turnover of the transmission system operator on the legally binding decisions of the transmission system operator on the transmission system operator or of up regulatory authority or of the Agency, transmission system operator or of up to 10 % of the annual turnover of the or to propose that a competent court to 10 % of the annual turnover of the vertically integrated undertaking on the impose such penalties. This shall vertically integrated undertaking on the vertically integrated undertaking, as include the power to impose or vertically integrated undertaking, as the case may be, for non-compliance propose the imposition of penalties of the case may be, for non-compliance with their respective obligations up to 10 % of the annual turnover of with their respective obligations pursuant to this Directive; and the transmission system operator on pursuant to this Directive; and

the transmission system operator or of up to 10 % of the annual turnover of the vertically integrated undertaking on the vertically integrated undertaking, as the case may be, for non-compliance with their respective obligations pursuant to this Directive; and

(e) appropriate rights of (e) appropriate rights of investigations and relevant powers of investigations and relevant powers of instructions for dispute settlement instructions for dispute settlement under Article 60 (2) and (3). under Article 60 (2) and (3).

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• 4. 

  In addition to the duties 4. In addition to the duties conferred upon it under paragraph 1 conferred upon it under paragraph 1 and 3 of this Article, when an and 3 of this Article, when an independent system operator has been independent system operator has been designated under Article 44 , the designated under Article 44 , the regulatory authority shall: regulatory authority shall: (a) monitor the transmission system (a) monitor the transmission system owner’s and the independent system owner’s and the independent system operator’s compliance with their operator’s compliance with their obligations under this Article, and obligations under this Article, and issue penalties for non-compliance in issue penalties for non-compliance in accordance with paragraph 3 (d); accordance with paragraph 3 (d); (b) monitor the relations and (b) monitor the relations and communications between the communications between the independent system operator and the independent system operator and the transmission system owner so as to transmission system owner so as to ensure compliance of the independent ensure compliance of the independent system operator with its obligations, system operator with its obligations, and in particular approve contracts and and in particular approve contracts and act as a dispute settlement authority act as a dispute settlement authority between the independent system between the independent system operator and the transmission system operator and the transmission system owner in respect of any complaint owner in respect of any complaint submitted by either party pursuant to submitted by either party pursuant to paragraph 11; paragraph 11; (c) without prejudice to the (c) without prejudice to the procedure under Article 442)(c), for procedure under Article 44(2)(c), for the first ten-year network development the first ten-year network development plan, approve the investments planning plan, approve the investments planning and the multi-annual network and the multi-annual network development plan presented at least development plan presented at least every two years by the independent every two years by the independent system operator; system operator;

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(d) ensure that network access (d) ensure that network access tariffs collected by the independent tariffs collected by the independent system operator include remuneration system operator include remuneration for the network owner or network for the network owner or network owners, which provides for adequate owners, which provides for adequate remuneration of the network assets and remuneration of the network assets and of any new investments made therein, of any new investments made therein, provided they are economically and provided they are economically and efficiently incurred; efficiently incurred; (e) have the powers to carry out (e) have the powers to carry out inspections, including unannounced inspections, including unannounced inspections, at the premises of inspections, at the premises of transmission system owner and transmission system owner and independent system operator; and independent system operator; and (f) monitor the use of congestion (f) monitor the use of congestion charges collected by the independent charges collected by the independent system operator in accordance with system operator in accordance with [Article 17(2) of recast of Regulation [Article 17(2) of recast of Regulation 714/2009 i as proposed by 714/2009 as proposed by COM(2016)861 i/2]. COM(2016)861 i/2]. 5. In addition to the duties and 5. In addition to the duties and powers conferred on it under powers conferred on it under paragraphs 1 and 3 4 of this Article, paragraphs 1 and 3 of this Article, when a transmission system operator when a transmission system operator has been designated in accordance with has been designated in accordance with Section 3 of Chapter VI, the regulatory Section 3 of Chapter VI, the regulatory authority shall be granted at least the authority shall be granted at least the following duties and powers: following duties and powers: (a) to issue penalties in accordance (a) to issue penalties in accordance with paragraph 3 (d) for discriminatory with paragraph 3 (d) for discriminatory behaviour in favour of the vertically behaviour in favour of the vertically integrated undertaking; integrated undertaking;

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(b) to monitor communications (b) to monitor communications between the transmission system between the transmission system operator and the vertically integrated operator and the vertically integrated undertaking so as to ensure compliance undertaking so as to ensure compliance of the transmission system operator of the transmission system operator with its obligations; with its obligations; (c) to act as dispute settlement (c) to act as dispute settlement authority between the vertically authority between the vertically integrated undertaking and the integrated undertaking and the transmission system operator in respect transmission system operator in respect of any complaint submitted pursuant to of any complaint submitted pursuant to Article 60(2); Article 60(2); (d) to monitor commercial and (d) to monitor commercial and financial relations including loans financial relations including loans between the vertically integrated between the vertically integrated undertaking and the transmission undertaking and the transmission system operator; system operator; (e) to approve all commercial and (e) to approve all commercial and financial agreements between the financial agreements between the vertically integrated undertaking and vertically integrated undertaking and the transmission system operator on the transmission system operator on the condition that they comply with the condition that they comply with market conditions; market conditions; (f) to request justification from the (f) to request justification from the vertically integrated undertaking when vertically integrated undertaking when notified by the compliance officer in notified by the compliance officer in accordance with Article 50(4). Such accordance with Article 50(4). Such justification shall, in particular, include justification shall, in particular, include evidence to the end that no evidence to the end that no discriminatory behaviour to the discriminatory behaviour to the advantage of the vertically integrated advantage of the vertically integrated undertaking has occurred; undertaking has occurred;

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(g) to carry out inspections, (g) to carry out inspections, including unannounced ones, on the including unannounced ones, on the premises of the vertically integrated premises of the vertically integrated undertaking and the transmission undertaking and the transmission system operator; and system operator; and (h) to assign all or specific tasks of (h) to assign all or specific tasks of the transmission system operator to an the transmission system operator to an independent system operator appointed independent system operator appointed in accordance with Article 44 in case in accordance with Article 44 in case of a persistent breach by the of a persistent breach by the transmission system operator of its transmission system operator of its obligations under this Directive, in obligations under this Directive, in particular in case of repeated particular in case of repeated discriminatory behaviour to the benefit discriminatory behaviour to the benefit of the vertically integrated of the vertically integrated undertaking. undertaking. 6. The regulatory authorities shall, 6. The regulatory authorities shall, except in cases where the Agency is except in cases where the Agency is competent to fix and approve the terms competent to fix and approve the terms and conditions or methodologies for and conditions or methodologies for the implementation of network codes the implementation of network codes and guidelines under Chapter VII of and guidelines under Chapter VII of [recast of Regulation 714/2009 i as [recast of Regulation 714/2009 i as proposed by COM(2016)861 i/2] proposed by COM(2016)861 i/2] pursuant to Article 5(2) of [recast of pursuant to Article 5(2) of [recast of Regulation 713/2009 i as proposed by Regulation 713/2009 i as proposed by COM(2016)863 i/2] because of their COM(2016)863 i/2] because of their coordinated nature, be responsible for coordinated nature, be responsible for fixing or approving sufficiently in fixing or approving sufficiently in advance of their entry into force at advance of their entry into force at least the national methodologies used least the national methodologies used to calculate or establish the terms and to calculate or establish the terms and conditions for: conditions for:

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(a) connection and access to (a) connection and access to national networks, including national networks, including transmission and distribution tariffs or transmission and distribution tariffs or their methodologies. Those tariffs or their methodologies. Those tariffs or methodologies shall allow the methodologies shall allow the necessary investments in the networks necessary investments in the networks to be carried out in a manner allowing to be carried out in a manner allowing those investments to ensure the those investments to ensure the viability of the networks; viability of the networks; (b) the provision of ancillary (b) the provision of ancillary services which shall be performed in services which shall be performed in the most economic manner possible the most economic manner possible and provide appropriate incentives for and provide appropriate incentives for network users to balance their input network users to balance their input and off-takes. The ancillary services and off-takes. The ancillary services shall be provided in a fair and nonshall be provided in a fair and nondiscriminatory manner and be based on discriminatory manner and be based on objective criteria; and objective criteria; and (c) access to cross-border (c) access to cross-border infrastructures, including the infrastructures, including the procedures for the allocation of procedures for the allocation of capacity and congestion management. capacity and congestion management. 7. The methodologies or the terms 7. The methodologies or the terms and conditions referred to in and conditions referred to in paragraph paragraph 6 shall be published. 6 shall be published. 8. With a view to increasing AM 166 8. With a view to increasing transparency in the market and provide 8. With a view to increasing transparency in the market and provide to all interested parties all necessary transparency in the market and provide to all interested parties all necessary information, decisions or proposals for to all interested parties all necessary information, decisions or proposals for a decision concerning transmission and information, decisions or proposals for a decision concerning transmission and distribution tariffs as referred in Article a decision concerning transmission and distribution tariffs as referred in Article 60(3), regulatory authorities shall make distribution tariffs as referred in Article 60(3), regulatory authorities shall make available to market parties the detailed 60(3), regulatory authorities shall make available to market parties the detailed methodology and underlying costs available to market parties the detailed methodology and underlying costs used for the calculation of the relevant methodology and underlying costs used for the calculation of the relevant

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network tariffs. used for the calculation of the relevant network tariffs, subject to applicable network tariffs by taking into account rule on confidentiality.

the investment cost, added value of distributed generation, flexibility, digitalisation, demand response, storage and use of the networks by system users including active customers and other factors.

• 9. 

  The regulatory authorities shall 9. The regulatory authorities shall monitor congestion management of monitor congestion management of national electricity systems including national electricity systems including interconnectors, and the interconnectors, and the implementation of congestion implementation of congestion management rules. To that end, management rules. To that end, transmission system operators or transmission system operators or market operators shall submit their market operators shall submit their congestion management rules, congestion management rules, including capacity allocation, to the including capacity allocation, to the national regulatory authorities. national regulatory authorities. National regulatory authorities may National regulatory authorities may request amendments to those rules. request amendments to those rules.

  Article 60 Decisions and complaints 1. Regulatory authorities shall 1. Regulatory authorities shall have the authority to require have the authority to require transmission and distribution system transmission and distribution system operators, if necessary, to modify the operators, if necessary, to modify the terms and conditions, including tariffs terms and conditions, including tariffs or methodologies referred to Article or methodologies referred to Article 59, to ensure that they are 59, to ensure that they are proportionate and applied in a nonproportionate and applied in a nondiscriminatory manner, in line with discriminatory manner, in line with Article 16 of [recast of Regulation Article 16 of [recast of Regulation 714/2009 i as proposed by 714/2009 as proposed by COM(2016)861 i/2]. In the event of COM(2016)861 i/2]. In the event of

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delay in the fixing of transmission and delay in the fixing of transmission and distribution tariffs, regulatory distribution tariffs, regulatory authorities shall have the power to fix authorities shall have the power to fix or approve provisional transmission or approve provisional transmission and distribution tariffs or and distribution tariffs or methodologies and to decide on the methodologies and to decide on the appropriate compensatory measures if appropriate compensatory measures if the final transmission and distribution the final transmission and distribution tariffs or methodologies deviate from tariffs or methodologies deviate from those provisional tariffs or those provisional tariffs or methodologies. methodologies. 2. Any party having a complaint 2. Any party having a complaint against a transmission or distribution against a transmission or distribution system operator in relation to that system operator in relation to that operator’s obligations under this operator’s obligations under this Directive may refer the complaint to Directive may refer the complaint to the regulatory authority which, acting the regulatory authority which, acting as dispute settlement authority, shall as dispute settlement authority, shall issue a decision within a period of two issue a decision within a period of two months after receipt of the complaint. months after receipt of the complaint. That period may be extended by two That period may be extended by two months where additional information is months where additional information is sought by the regulatory authority. sought by the regulatory authority. That extended period may be further That extended period may be further extended with the agreement of the extended with the agreement of the complainant. The regulatory complainant. The regulatory authority’s decision shall have binding authority’s decision shall have binding effect unless and until overruled on effect unless and until overruled on appeal. appeal.

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• 3. 

  Any party who is affected and 3. Any party who is affected and who has a right to complain who has a right to complain concerning a decision on concerning a decision on methodologies taken pursuant to methodologies taken pursuant to Article 59 or, where the regulatory Article 59 or, where the regulatory authority has a duty to consult, authority has a duty to consult, concerning the proposed tariffs or concerning the proposed tariffs or methodologies, may, at the latest methodologies, may, at the latest within two months, or a shorter time within two months, or a shorter time period as provided by Member States, period as provided by Member States, following publication of the decision following publication of the decision or proposal for a decision, submit a or proposal for a decision, submit a complaint for review. Such a complaint for review. Such a complaint shall not have suspensive complaint shall not have suspensive effect. effect. 4. Member States shall create 4. Member States shall create appropriate and efficient mechanisms appropriate and efficient mechanisms for regulation, control and for regulation, control and transparency so as to avoid any abuse transparency so as to avoid any abuse of a dominant position, in particular to of a dominant position, in particular to the detriment of consumers, and any the detriment of consumers, and any predatory behaviour. Those predatory behaviour. Those mechanisms shall take account of the mechanisms shall take account of the provisions of the Treaty, and in provisions of the Treaty, and in particular Article 102 thereof. particular Article 102 thereof. 5. Member States shall ensure that 5. Member States shall ensure that the appropriate measures are taken, the appropriate measures are taken, including administrative action or including administrative action or criminal proceedings in conformity criminal proceedings in conformity with their national law, against the with their national law, against the natural or legal persons responsible natural or legal persons responsible where confidentiality rules imposed by where confidentiality rules imposed by this Directive have not been respected. this Directive have not been respected.

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• 6. 

  Complaints referred to in 6. Complaints referred to in paragraphs 2 and 3 shall be without paragraphs 2 and 3 shall be without prejudice to the exercise of rights of prejudice to the exercise of rights of appeal under Union or national law. appeal under Union or national law. 7. Decisions taken by regulatory 7. Decisions taken by regulatory authorities shall be fully reasoned and authorities shall be fully reasoned and justified to allow for judicial review. justified to allow for judicial review. The decisions shall be available to the The decisions shall be available to the public while preserving the public while preserving the confidentiality of commercially confidentiality of commercially sensitive information. sensitive information. 8. Member States shall ensure that 8. Member States shall ensure that suitable mechanisms exist at national suitable mechanisms exist at national level under which a party affected by a level under which a party affected by a decision of a regulatory authority has a decision of a regulatory authority has a right of appeal to a body independent right of appeal to a body independent of the parties involved and of any of the parties involved and of any government. government.

  Article 61 Regional cooperation between regulators on cross-border issues 1. Regulatory authorities shall 1. Regulatory authorities shall closely consult and cooperate with closely consult and cooperate with each other, in particular within the each other, in particular within the Agency, and shall provide each other Agency, and shall provide each other and the Agency with any information and the Agency with any information necessary for the fulfilment of their necessary for the fulfilment of their tasks under this Directive. In respect of tasks under this Directive. In respect of the information exchanged, the the information exchanged, the receiving authority shall ensure the receiving authority shall ensure the same level of confidentiality as that same level of confidentiality as that required of the originating authority. required of the originating authority. 2. Regulatory authorities shall 2. Regulatory authorities shall cooperate at least at a regional level to: cooperate at least at a regional level to:

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(a) foster the creation of operational (a) foster the creation of operational arrangements in order to enable an arrangements in order to enable an optimal management of the network, optimal management of the network, promote joint electricity exchanges and promote joint electricity exchanges and the allocation of cross-border capacity, the allocation of cross-border capacity, and to enable an adequate level of and to enable an adequate level of interconnection capacity, including interconnection capacity, including through new interconnection, within through new interconnection, within the region and between regions to the region and between regions to allow for development of effective allow for development of effective competition and improvement of competition and improvement of security of supply, without security of supply, without discriminating between supply discriminating between supply undertakings in different Member undertakings in different Member States; States; (b) coordinate the joint oversight of (b) coordinate the joint oversight of entities performing functions at entities performing functions at regional level; regional level; (c) coordinate, in cooperation with (c) coordinate, in cooperation with other involved authorities, the joint other involved authorities, the joint oversight of national, regional and oversight of national, regional and European-wide adequacy assessments; European-wide adequacy assessments; (d) coordinate the development of (d) coordinate the development of all network codes and Guidelines for all network codes and Guidelines for the relevant transmission system the relevant transmission system operators and other market actors ; and operators and other market actors ; and (e) coordinate the development of (e) coordinate the development of the rules governing the management of the rules governing the management of congestion. congestion. 3. National regulatory authorities 3. National regulatory authorities shall have the right to enter into shall have the right to enter into cooperative arrangements with each cooperative arrangements with each other to foster regulatory cooperation. other to foster regulatory cooperation.

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• 4. 

  The actions referred to in 4. The actions referred to in paragraph 2 shall be carried out, as paragraph 2 shall be carried out, as appropriate, in close consultation with appropriate, in close consultation with other relevant national authorities and other relevant national authorities and without prejudice to their specific without prejudice to their specific competencies. competencies. 5. The Commission is empowered 5. The Commission is empowered to adopt delegated acts in accordance to adopt [] implementing acts in with Article 67 to establish guidelines accordance with Article [] 68 to on the extent of the duties of the establish guidelines on the extent of regulatory authorities to cooperate with the duties of the regulatory authorities each other and with the Agency. to cooperate with each other and with

  the Agency.

  Article 62 Duties and powers of regulatory authorities with respect to [] Regional Security Coordinators

  AM 167 Article 62 – title Duties and powers of regulatory authorities with respect to regional coordination centres

• 1. 

  The regional regulatory AM 168 1. The regional regulatory authorities of the geographical area 1. The regional regulatory authorities of the [] system operation where a regional operational centre is authorities of the geographical area region where a Regional Security established shall, in close coordination where a regional coordination centre is Coordinators is established shall, in with each other: established shall, in close coordination close coordination with each other:

  with each other:

(a) approve the statutes and rules of AM 169 (a)approve the [] proposal for the procedure; (a) approve the proposal for the establishment of Regional Security

establishment of regional Coordinators in accordance with coordination centres in accordance Article 32(1) of Regulation (EU); with Article 32(1) of Regulation (EU) … [recast of Regulation 714/2009 i as proposed by COM (2016) 861 i/2];

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(b) approve the annual budget; (b)[]

(c) approve the cooperative AM 170 (c) approve the cooperative decision-making process; (c) approve the cooperative decision-making process;

processes;

(d) assess if the regional operational AM 171 (d)[] proposing jointly with other centre has the appropriate (d) ensure that if the regional regulatory authorities of a system competences, resources and coordination centre has the operation region about possible impartiality to carry out independently appropriate competences, resources additional tasks and additional the functions and tasks assigned to it, and impartiality to carry out decision-making powers to be including security, liability and independently the functions and tasks assigned to the Regional Security contingency arrangements; assigned to it, including security, Coordinators by the Member States

liability and contingency of the system operation region []; arrangements;

(e) ensure its compliance with the (e) ensure its compliance with the obligations under this Directive and obligations under this Directive and other relevant Union legislation, other relevant Union legislation, notably as regards cross-border issues; notably as regards cross-border issues; (f) monitor the performance of their (f)monitor the performance of [] functions and report annually to the system coordination and report Agency in this respect. annually to the Agency in this respect. 2. Member States shall ensure that 2. Member States shall ensure that regulatory authorities are granted the regulatory authorities are granted the powers enabling them to carry out the powers enabling them to carry out the duties referred to in paragraph 1 in an duties referred to in paragraph 1 in an efficient and expeditious manner. For efficient and expeditious manner. For this purpose, the regulatory authorities this purpose, the regulatory authorities shall have at least the following shall have at least the following powers: powers: (a) to request information from AM 172 (a) to request information from regional operational centres; (a) to request information from Regional [] Security Coordinators;

regional coordination centres;

(b) to carry out inspections, AM 173 (b) to carry out inspections, including unannounced inspections, at (b) to carry out inspections, including unannounced inspections, at the premises of regional operational including unannounced inspections, at the premises of [] Regional Security centres; the premises of regional coordination Coordinators;

centres;

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(c) to issue joint binding decisions AM 174 (c) to issue joint binding decisions on regional operational centres. (c) to issue joint binding decisions relevant for the improvement of

on regional coordination centres. coordination on [] Regional Security Coordinators.

AM 175 (ca) (new) to handle complaints against regional coordination centres in relation to their obligations under Union law. AM 176 (cb) (new) Regulatory authorities shall cooperate and consult with each other and with the Agency, and shall provide each other and the Agency with any information necessary for the fulfilment of their tasks under this Article. Article 63 Compliance with the network codes and guidelines

• 1. 

  Any regulatory authority and the 1. Any regulatory authority and the

Commission may request the opinion Commission may request the opinion of the Agency on the compliance of a of the Agency on the compliance of a decision taken by a regulatory decision taken by a regulatory authority with the network codes and authority with the network codes and guidelines referred to in this Directive guidelines referred to in this Directive or in Chapter VII of [recast of or in Chapter VII of [recast of Regulation 714/2009 i as proposed by Regulation 714/2009 i as proposed by COM(2016)861 i/2] . COM(2016)861 i/2] . 2. The Agency shall provide its 2. The Agency shall provide its opinion to the regulatory authority opinion to the regulatory authority which has requested it or to the which has requested it or to the Commission, respectively, and to the Commission, respectively, and to the regulatory authority which has taken regulatory authority which has taken the decision in question within three the decision in question within three months from the date of receipt of the months from the date of receipt of the request. request.

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• 3. 

  Where the regulatory authority 3. Where the regulatory authority which has taken the decision does not which has taken the decision does not comply with the Agency’s opinion comply with the Agency’s opinion within four months from the date of within four months from the date of receipt of that opinion, the Agency receipt of that opinion, the Agency shall inform the Commission shall inform the Commission accordingly. accordingly. 4. Any regulatory authority may 4. Any regulatory authority may inform the Commission where it inform the Commission where it considers that a decision relevant for considers that a decision relevant for cross-border trade taken by another cross-border trade taken by another regulatory authority does not comply regulatory authority does not comply with the network codes and guidelines with the network codes and guidelines referred to in this Directive or in referred to in this Directive or in Chapter VII of [recast of Regulation Chapter VII of [recast of Regulation 714/2009 i as proposed by 714/2009 as proposed by COM(2016)861 i/2] within two months COM(2016)861 i/2] within two months from the date of that decision. from the date of that decision. 5. Where the Commission, within 5. Where the Commission, within two months after having been informed two months after having been informed by the Agency in accordance with by the Agency in accordance with paragraph 3, or by a regulatory paragraph 3, or by a regulatory authority in accordance with authority in accordance with paragraph paragraph 4, or on its own initiative, 4, or on its own initiative, within three within three months from the date of months from the date of the decision, the decision, finds that the decision of finds that the decision of a regulatory a regulatory authority raises serious authority raises serious doubts as to its doubts as to its compatibility with the compatibility with the network codes network codes and guidelines referred and guidelines referred to in this to in this Directive or in Chapter VII of Directive or in Chapter VII of [recast [recast of Regulation 714/2009 i as of Regulation 714/2009 i as proposed by proposed by COM(2016)861 i/2] , the COM(2016)861 i/2] , the Commission Commission may decide to examine may decide to examine the case the case further. In such a case, it shall further. In such a case, it shall invite invite the regulatory authority and the the regulatory authority and the parties

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parties to the proceedings before the to the proceedings before the regulatory authority to submit regulatory authority to submit observations. observations. 6. Where the Commission takes a 6. Where the Commission takes a decision to examine the case further, it decision to examine the case further, it shall, within four months of the date of shall, within four months of the date of such decision, issue a final decision: such decision, issue a final decision: (a) not to raise objections against (a) not to raise objections against the decision of the regulatory the decision of the regulatory authority; or authority; or (b) to require the regulatory (b) to require the regulatory authority concerned to withdraw its authority concerned to withdraw its decision on the basis that the the decision on the basis that the network network codes and guidelines have not codes and guidelines have not been been complied with. complied with. 7. Where the Commission has not 7. Where the Commission has not taken a decision to examine the case taken a decision to examine the case further or a final decision within the further or a final decision within the time-limits set in paragraphs 5 and 6 time-limits set in paragraphs 5 and 6 respectively, it shall be deemed not to respectively, it shall be deemed not to have raised objections to the decision have raised objections to the decision of the regulatory authority. of the regulatory authority. 8. The regulatory authority shall 8. The regulatory authority shall comply with the Commission decision comply with the Commission decision to withdraw their decision within a to withdraw their decision within a period of two months and shall inform period of two months and shall inform the Commission accordingly. the Commission accordingly. 9. The Commission is empowered 9. The Commission is empowered to adopt delegated acts in accordance to adopt [] implementing acts in with Article 67 to establish guidelines accordance with Article [] 68 to setting out the details of the procedure establish guidelines setting out the to be followed for the application of details of the procedure to be followed this Article. for the application of this Article.

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Article 64 Record keeping 1. Member States shall require 1. Member States shall require supply undertakings to keep at the supply undertakings to keep at the disposal of the national authorities, disposal of the national authorities, including the national regulatory including the [] regulatory authority, authority, the national competition the national competition authorities authorities and the Commission, for and the Commission, for the fulfilment the fulfilment of their tasks, for at least of their tasks, for at least five years, the five years, the relevant data relating to relevant data relating to all transactions all transactions in electricity supply in electricity supply contracts and contracts and electricity derivatives electricity derivatives with wholesale with wholesale customers and customers and transmission system transmission system operators operators. 2. The data shall include details on 2. The data shall include details on the characteristics of the relevant the characteristics of the relevant transactions such as duration, delivery transactions such as duration, delivery and settlement rules, the quantity, the and settlement rules, the quantity, the dates and times of execution and the dates and times of execution and the transaction prices and means of transaction prices and means of identifying the wholesale customer identifying the wholesale customer concerned, as well as specified details concerned, as well as specified details of all unsettled electricity supply of all unsettled electricity supply contracts and electricity derivatives. contracts and electricity derivatives. 3. The regulatory authority may 3. The regulatory authority may decide to make available to market decide to make available to market participants elements of that participants elements of that information provided that information provided that commercially sensitive information on commercially sensitive information on individual market players or individual individual market players or individual transactions is not released. This transactions is not released. This paragraph shall not apply to paragraph shall not apply to information about financial information about financial instruments which fall within the scope instruments which fall within the scope of Directive 2004/39/EC i. of Directive 2004/39/EC i.

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• 4. 

  The provisions of this Article 4. The provisions of this Article shall not create additional obligations shall not create additional obligations towards the authorities referred to in towards the authorities referred to in paragraph 1 for entities falling within paragraph 1 for entities falling within the scope of Directive 2004/39/EC i. the scope of Directive 2004/39/EC i. 5. In the event that the authorities 5. In the event that the authorities referred to in paragraph 1 need access referred to in paragraph 1 need access to data kept by entities falling within to data kept by entities falling within the scope of Directive 2004/39/EC i, the the scope of Directive 2004/39/EC i, the authorities responsible under that authorities responsible under that Directive shall provide them with the Directive shall provide them with the required data. required data.

  CHAPTER VIII FINAL PROVISIONS

  Article 65 Level playing field 1. Measures that the Member 1. Measures that the Member States may take pursuant to this States may take pursuant to this Directive in order to ensure a level Directive in order to ensure a level playing field shall be compatible with playing field shall be compatible with the Treaty, notably Article 36 thereof, the Treaty, notably Article 36 thereof, and with Union law. and with Union law. 2. The measures referred to in 2. The measures referred to in paragraph 1 shall be proportionate, paragraph 1 shall be proportionate, non-discriminatory and transparent. non-discriminatory and transparent. Those measures may be put into effect Those measures may be put into effect only following the notification to and only following the notification to and approval by the Commission. approval by the Commission.

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• 3. 

  The Commission shall act on the 3. The Commission shall act on the notification referred to in paragraph 2 notification referred to in paragraph 2 within two months of the receipt of the within two months of the receipt of the notification. That period shall begin on notification. That period shall begin on the day following receipt of the the day following receipt of the complete information. In the event that complete information. In the event that the Commission has not acted within the Commission has not acted within that two-month period, it shall be that two-month period, it shall be deemed not to have raised objections deemed not to have raised objections to the notified measures. to the notified measures.

  Article 66 Derogations 1. Member States which can 1. Member States which can demonstrate that there are substantial demonstrate that there are substantial problems for the operation of their problems for the operation of their small isolated systems, may apply for small [] connected systems and small derogations from the relevant isolated systems, may apply for provisions of Chapters IV, V and VI as derogations from the relevant well as articles 4, 6, 7 and 8. . The provisions of Chapters IV, V and VI as Commission shall inform the Member well as articles [] 7 and 8; small States of those applications before isolated systems may also apply for a taking a decision, taking into account derogation from articles 4, 5 and 6.. respect for confidentiality. That The Commission shall inform the decision shall be published in the Member States of those applications Official Journal of the European before taking a decision, taking into Union. account respect for confidentiality. For

  small connected systems and small isolated systems, the derogation shall be limited in time and subject to conditions aiming at increased competition and integration with the internal market and ensuring that they do not hamper the transition towards renewable energies. For outermost regions within the

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meaning of Article 349 of TFEU, that cannot be interconnected with the European energy market, the derogation shall not be limited in time and shall be subject to conditions aimed at ensuring that the derogation does not hamper the transition towards renewable energies. That decision shall be published in the Official Journal of the European Union.

• 2. 

  Article 43 shall not apply to 2. Article 43 shall not apply to

Cyprus and Malta. In addition, Cyprus, Luxembourg and Malta. In

Articles 6 and 35 shall not apply to addition, Articles 6 and 35 shall not

Malta. apply to Malta and Articles 44, 45, 46,

47, 48, 49, 50 and 52 shall not apply to Cyprus.

For the purposes of Article 43 (1)(b), For the purposes of Article 43 (1)(b), the notion ‘undertaking performing the notion ‘undertaking performing any of the functions of generation or any of the functions of generation or supply’ shall not include final supply’ shall not include final customers who perform any of the customers who perform any of the functions of generation and/or supply functions of generation and/or supply of electricity, either directly or via of electricity, either directly or via undertakings over which they exercise undertakings over which they exercise control, either individually or jointly, control, either individually or jointly, provided that the final customers provided that the final customers including their shares of the electricity including their shares of the electricity produced in controlled undertakings produced in controlled undertakings are, on an annual average, net are, on an annual average, net consumers of electricity and provided consumers of electricity and provided that the economic value of the that the economic value of the electricity they sell to third parties is electricity they sell to third parties is insignificant in proportion to their insignificant in proportion to their other business operations. other business operations.

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2a. Until 1 January 2025 or a later date set out in a decision pursuant to paragraph 1, Article 5 shall not apply to Cyprus. 2b. Article 4 shall not apply to Malta for a period of eight years from the entry into force of this Directive, which may be extended for a further additional period, not exceeding eight years. The extension for a further additional period shall be made pursuant to a decision referred to in paragraph 1. [2c. In respect of interconnectors to and from third countries completed before [PO: date of entry into force of this Directive], Member States may decide to derogate from Articles 43, 52, 53, 59(6), 59(8) and 60(1) for the sections of such interconnectors between the border of Union territorial jurisdiction and the first interconnection point, if and to the extent that in the absence of such derogation the owner of the interconnector would not be able to recover the residual value of the investment or if and to the extent that the derogation is required for reasons of security of electricity supply of a Member State directly linked to the need to continue the implementation of a cross-border regulatory arrangement governing the technical operation of the

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interconnector or the stability of the electricity systems, and provided that the derogation would not be detrimental to competition on or the effective functioning of the internal market in electricity in the Union, or the security of supply in the Union.] [2d. The derogation shall be limited up to the end of the period of recovery of the residual value of the investment or up to the end of the existing cross-border regulatory arrangement breach of which would pose a serious risk to the security of supply in the Member State and may be subject to conditions which contribute to the achievement of the above conditions. Where the interconnector in question is located in the territorial jurisdiction of more than one Member State, the Member State in the territorial jurisdiction of which the first interconnection point is located shall decide on a derogation for the interconnector. Member States shall publish any decision on a derogation in accordance with this paragraph within one year after the entry into force of this Directive.]

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[2e. Paragraph 2c and 2d is not applicable to interconnectors completed before [PO: date of entry into force of this Directive] to and from third countries which apply Article 59 of the [recast Electricity Regulation.] [2f. As regards interconnectors referred to in paragraph 2e, Member States may apply for exemptions pursuant to Article 59 of the [recast Electricity Regulation]]

Article 67

[]

• 1. 

  The power to adopt delegated []

acts is conferred on the Commission

subject to the conditions laid down in

this Article.

• 2. 

  The power to adopt delegated [] acts referred to in Article 61 and

Article 63 shall be conferred on the

Commission for an undetermined period of time from the (OP: please insert the date of entry into force).

• 3. 

  The delegation of power referred [] to in Article 61 and 63 may be revoked at any time by the European

Parliament or by the Council. A decision to revoke shall put an end to the delegation of power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the

ANNEX DGE 2B EN

European Union or at a later date specified therein. It shall not affect the validity of any delegated act already in force.

• 4. 

  Before adopting a delegated act, [] the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional

Agreement on Better Law-Making of

13 April 2016.

• 5. 

  As soon as it adopts a delegated [] act, the Commission shall notify it simultaneously to the European

Parliament and to the Council.

A delegated act adopted pursuant to []

Article 61 and 63 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the

European Parliament and the Council or if, before the expiry of that period, the European Parliament and the

Council have both informed the

Commission that they will not object.

That period shall be extended by two months at the initiative of the

European Parliament or of the Council.

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Article 68 Committee procedure 1. The Commission shall be 1. The Commission shall be assisted by a committee. That assisted by a committee. That committee shall be a committee within committee shall be a committee within the meaning of Regulation (EU) the meaning of Regulation (EU) No No 182/2011 i. 182/2011. 2. Where reference is made to this 2. Where reference is made to this paragraph, Article 4 of Regulation paragraph, Article [] 5 of Regulation (EU) No 182/2011 i shall apply. (EU) No 182/2011 shall apply.

Article 69

Reporting

The Commission shall monitor and The Commission shall monitor and

review the application of this Directive review the application of this Directive

and submit an overall progress report and submit an overall progress report

to the European Parliament and the to the European Parliament and the

Council as an annex to the State of the Council as an annex to the State of the

Energy Union Report referred to in Energy Union Report referred to in

[Article 29 of Governance Regulation [Article 29 of Governance Regulation

as proposed by COM (2016) 549 i. as proposed by COM (2016) 549 i.

AM 177

Article 69a (new)

Review

By 1 June 2025, the Commission shall

review and submit a report on the

implementation of this Directive,

together with a legislative proposal if

appropriate, to the European

Parliament and to the Council.

The review shall in particular assess

whether customers, especially those

who are vulnerable or in energy

poverty, are adequately protected

under the provisions of this Directive.

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Article 70 Transposition 1. Member States shall bring into 1. Member States shall bring into force the laws, regulations and force the laws, regulations and administrative provisions necessary to administrative provisions necessary to comply with Articles 2, 3, 5, 6(2), 9(2), comply with Articles 2, 3, 5, 6(2), 10(2), 11 to 24, 26, 29, 31 to 34, 36, 9(2), 10(2), 11 to 24, 26, 29, 31 to 34, 38(5), 40 42, 51, 54, 57 to 59, 61 to 63 36, 38(5), 40 42, 51, 54, 57 to 59, 61 to and Annexes I to III by [12 months 63 and Annexes I to III by [ [] 18 from entry into force] . They shall months from entry into force]. They immediately communicate the text of shall immediately communicate the those provisions to the Commission. text of those provisions to the

Commission . They shall apply those measures from They shall apply those measures from [12 months from entry into force with [] 18 months from entry into force with the exception of Article 5(3) which the exception of Article 5(3) which they shall apply from [date of entry they shall apply after 6 months from into force] . [date of entry into force]. When Member States adopt those When Member States adopt those measures, they shall contain a measures, they shall contain a reference to this Directive or be reference to this Directive or be accompanied by such a reference on accompanied by such a reference on the occasion of their official the occasion of their official publication. They shall also include a publication. They shall also include a statement that references in existing statement that references in existing laws, regulations and administrative laws, regulations and administrative provisions to the Directive repealed by provisions to the Directive repealed by this Directive shall be construed as this Directive shall be construed as references to this Directive. Member references to this Directive. Member States shall determine how such States shall determine how such reference is to be made and how that reference is to be made and how that statement is to be formulated . statement is to be formulated.

ANNEX DGE 2B EN

• 2. 

  Member States shall 2. Member States shall communicate to the Commission the communicate to the Commission the text of the main provisions of national text of the main provisions of national law which they adopt in the field law which they adopt in the field covered by this Directive. covered by this Directive.

  Article 71 Repeal

Directive 2009/72/EC i is repealed with Directive 2009/72/EC i is repealed with effect from [12 months from entry into effect from [ [] 18 months from entry force], without prejudice to the into force], without prejudice to the obligations of Member States relating obligations of Member States relating to the time-limits for the transposition to the time-limits for the transposition into national law and the dates of into national law and the dates of application of the Directive set out in application of the Directive set out in Annex IV. Annex IV.

References to the repealed Directive References to the repealed Directive shall be construed as references to this shall be construed as references to this Directive and shall be read in Directive and shall be read in accordance with the correlation table accordance with the correlation table set out in Annex V. set out in Annex V.

Article 71a General Revision of the Directive

The Directive shall be subject to a general revision not later than by the end of 2025.

Article 72 Entry into force This Directive shall enter into force on This Directive shall enter into force on the twentieth day following that of its the twentieth day following that of its publication in the Official Journal of publication in the Official Journal of the European Union. the European Union.

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Article 73 Addressees This Directive is addressed to the This Directive is addressed to the Member States. Member States. Done at Brussels, Done at Brussels, For the European Parliament For the European Parliament The President The President For the Council For the Council The President The President

ANNEXES

ANNEX I

[]

The tools established in accordance []

with Article 14 shall:

(a) be operationally independent and AM 178 (a) []

ensure that suppliers are given equal (a) be independent from all market

treatment in search results; players and ensure that all suppliers

are given equal treatment in search

results;

(b) clearly disclose their owners and AM 179 (b) []

the natural or legal person operating (b) clearly disclose their owners and

the tool; the natural or legal person operating

the tool as well as information on how

the tools are financed;

(c) set out clear, objective criteria on AM 180 (c) []

which the comparison will be based; (c) set out clear, objective criteria

on which the comparison will be

based, displaying included services;

AM 181

(ca) (new) rank and display the

search results according to an

impartial algorithm independent from

any remuneration from suppliers;

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(d) use plain and unambiguous (d) [] language;

AM 182 (da) (new) be accessible for persons with disabilities; AM 183 (f) include an as complete a range of energy offers, including information on energy sources, and provide transparency of various offers covering both dynamic and nondynamic tariffs, individual and bundled contracts, from suppliers, aggregators and service providers, and, where the information presented is not a complete overview of the market, a clear statement to that effect, before displaying results; and

(e) provide accurate and up-to-date (e) [] information and state the time of the last update;

(f) include an as complete a range of (f) [] electricity offers as practicable covering a significant part of the market and, where the information presented is not a complete overview of the market, a clear statement to that effect, before displaying results; and

(g) provide an effective procedure to (g) [] report incorrect information on published offers.

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AM 184 (ga) (new) allow consumers to perform comparisons without having to submit personal information. ANNEX II

MINIMUM REQUIREMENTS FOR BILLING AND BILLING INFORMATION 1. Minimum information contained in 1. Minimum information contained in the bill the bill

The following information shall be AM 185 The following information shall be prominently displayed to final The following key information shall be prominently displayed to final customers in their bills and periodical prominently displayed to final customers in their bills and [] billing settlement bills: customers in their bills and periodical information:

settlement bills, distinctly apart from other parts of the bill:

(a) the price to pay; and, where AM 186 (a) the price to pay; and, where possible, the breakdown of price; (a) the price to pay and, where possible, [] a breakdown of the price;

relevant, the final price per kWh; and, where possible, the breakdown of price; AM 187 (aa) (new) when the payment is due;

(b) electricity consumption for the (b) electricity consumption for the billing period; billing period;

(c) the name of the supplier; (c) the name [] and the contact details of the supplier including a consumer support hotline;

(d) the contact details of the AM 188 (d) [] supplier including a consumer support (d) the contact details of the hotline; supplier with at least the phone

number and email address; AM 189 (da) (new) the information on switching and dispute settlement;

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(e) the tariff name; (e) the tariff name;

(f) the duration of the contract; the (f) [] the end date of [] the contract, date of end of the contract and the if applicable; [] deadline for sending an advance notice of cancelation if the consumer considers switching at the end of the current fixed contract, while for contracts of indeterminate duration: the length of the advance notice period and the methods of communication on this choice.